Refinance Break even CalculatorFunding of the break-even calculator
Initial amount of the mortgageOriginal amount of your mortgages. Actual interest rateThe yearly interest on the initial borrowing. Actual maturity in yearsOverall length of your existing mortgages in years. Number of years remainingNo. of years that remain on your present mortgages. Your actual earnings before taxes. To help you estimate your national income taxes, use the "Registration status and personal income rates" table.
To have the calculator calculate your residual credit on the basis of your initial credit information and the number of years left, select this option. Actual estimated valueThe actual estimated value of your house. Credit balancesBalance of your mortgages that are being repaid. The new interest rateThe yearly interest for the new borrowing. Number of years for your new credit.
Lending ratesThis is the percent of the new mortgages that will be granted to the borrower as a lending charge. As a rule, this charge amounts to 1% of the credit surplus. This is the number of points that will be given to the creditor to lower the interest rates on the mortgages. Every point will cost 1% of the new amount of the credit.
Miscellaneous acquisition costEstimate of all other acquisition related expenses for this facility. Mortgage insurance (PMI) monthly payment Mortgage insurance (PMI) monthly premium. The PMI is valued at 0.5% of your credit surplus each year for credits backed by less than 20% decline. The monthly PMI is determined by multipling your initial credit amount by this percentage and subtracting it by 12.
If your home's capital funds exceed the PMI requirement percentages, your PMI payout will drop to zero. Usually PMI is needed if you have less than 20% of your own capital in your home, but to refinance a Freddie Mac or Fannie Mae guarantee you may not be obliged to repay PMI if your present home does not have it.
Select the "Do not take PMI into account" checkbox if this is the case for your funding. Your actual amount is the total of capital, interest and PMI (Principal Mortgage Insurance). They are not listed here because the funding has no effect on your insurances or tax. Your new number is the total of capital, interest and PMI.
PI monthlyMonthly capital and interest payments. The number of time it takes for your montly payments cut to be greater than the acquisition cost. The number of time it will take for your interest and PMI cost reductions to outweigh your acquisition cost.
The number of monthly break-even points in which your after-tax interest and PMI saving will outweigh your acquisition cost. This is the most prudent 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 prepayment of your mortgages.
Advance payment amount used in this computation is the amount you would have to pay to complete the work.