Mortgage Refinance Decision Calculator

Hypothec refinancing decision calculator

Houseowners generally have three main reasons to make this decision. In the following we explain the factors influencing this decision. This calculator can help you sort out the confusion and determine whether refinancing your mortgage is a sound financial decision.

Break-even calculator refinanced new mortgage

What will be the time to break even on a mortgage refinance? Among these are your actual interest rates, the new prospective interest rates, the closure charges and how long you are planning to remain in your home. This calculator can help you organize the mess and see whether funding your mortgage is a solid finance decision.

INFORMATION: Information and interaction computers are provided to you as self-help resources for your own personal use and are not meant to be financial advisory services. Initial mortgage amount Initial amount of your mortgage. Actual maturity in years Overall length of your actual mortgage in years. Number of years left on your mortgage.

Repayment of interest The yearly interest on the new credit. Number of years for your new credit. Lending Ratio This is the new mortgage payment made to the borrower as a charge for lending. As a rule, this charge amounts to 1% of the credit surplus.

Estimate of all other acquisition cost for this credit. This is the number of points that will be given to the creditor to lower the interest on the mortgage. Every point will cost 1% of the new amount of the credit. Your actual amount is the total of your principal, interest and PMI (Principal Mortgage Insurance).

They are not listed here because the funding has no effect on your insurances or tax. Your new pecuniary interest is the total of capital, interest and PMI. PMI payments for the month PMI costs for the month. The PMI is calculated at 0.5% of your credit surplus each year for credits backed by less than 20% decline.

PMI is determined by doubling your initial credit amount by this amount and divide by 12. If your home's capital funds exceed the PMI requirement percentages, your PMI payout will drop to zero. PI instalment paid each month Capital and interest paid each month. Break even your montly payments saving The number of month it will take until your montly payments saving is greater than the acquisition cost.

Break Even PMI & Interest Saving The number of month it takes for your interest and PMI saving to outweigh your acquisition cost. Break -even Overall saving after taxes The number of monthly periods in which your after-tax interest and PMI saving exceeds your acquisition cost. This is the most precautionary break even policy.

The number of time it takes for your after-tax interest and PMI saving to surpass both your acquisition cost and any interest saved on the advance payment of your mortgage. Advance payment amount used in this computation is the amount you would have to pay to complete the work.

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