Should I Refinance?

Input Information
  Before Refinancing After Refinancing
Amount : ($)
Interest Rate : (%) (%)
Length : (Yrs) (Yrs)
Months Paid : (Mts)
Years Before Sell : (Yrs)
Fees and Points
Points : (%)
Origination Fees : (%)
Closing Costs : ($)
Your Taxes Rates
Tax Rate : (%)
State Tax Rate : (%)
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Thanks for using our calculation tools. Your results appear below. Click the heading in the next section to switch between plain English and financial views. Do you have questions or feedback? Contact us.

Financial Analysis (Switch to Plain English)
  Before Refinancing
(Am. Table)
After Refinancing
(Am. Table)
Monthly Payment : $1,357.37 $1,178.55
Total Monthly Payments : $81,442.47 $70,712.78
Monthly Payment Savings : $10,729.69
Total Interests Paid : $55,512.39 $50,700.90
Tax Savings : $17,208.84 $15,717.28
Tax Saving Losses : $1,491.56
Balance at Refinance : $229,895.49
Points Value : $2,298.95
Refinance amount : $229,895.49
Balance at Sale : $203,965.42 $209,883.62
Balance Losses : $5,918.20
Total Losses : $7,409.76
Total Closing Costs : $3,498.95
Total Savings : $10,729.69
Total Benefit
(Savings - Losses - Closing) :
$-179.03
Plain English Help (Switch to Financial Analysis)

Deciding whether or not you should refinance your home mortgage depends upon several factors. It also depends upon whether you are looking to simply reduce your monthly payment or if you are hoping to save money in the long run.

To understand better, let’s look at an example. If your original 30 years loan was for $250,000.00 with a 5.100% interest, and you have already paid on it for 60 months, it will reduce your monthly payment if you refinance for a new 30 years period but with a 4.600% interest rate.

If your Federal tax rate is 26.000% and your state tax rate is 5.000%, you were probably paying $1,357.37 per month toward your home. When you refinance at the new rate, you will pay $1,178.55 instead, but your tax benefits will also be affected by this change.

The bottom line is:

  • you will lose $1,491.56 on tax savings (lesser tax benefit is worse)
  • your remaining balance will be $5,918.20 bigger because you will pay less toward your mortgage principal (bigger principal is worse)
  • closing your refinancing process will cost you $3,498.95

Summing up these numbers, we can figure out your total refinancing LOSSES, which will be $179.03.

Original Payment Schedule (Before and After Refinancing)
No Interests Principal Balance
1 1,062.50 294.87 249,705.13
2 1,061.25 296.13 249,409.00
3 1,059.99 297.39 249,111.61
4 1,058.72 298.65 248,812.96
5 1,057.46 299.92 248,513.04
6 1,056.18 301.19 248,211.85
7 1,054.90 302.47 247,909.37
8 1,053.61 303.76 247,605.61
9 1,052.32 305.05 247,300.56
10 1,051.03 306.35 246,994.22
11 1,049.73 307.65 246,686.57
12 1,048.42 308.96 246,377.61
1 Yr

---
12,666.10

---
3,622.39

 
13 1,047.10 310.27 246,067.34
14 1,045.79 311.59 245,755.75
15 1,044.46 312.91 245,442.84
16 1,043.13 314.24 245,128.60
17 1,041.80 315.58 244,813.02
18 1,040.46 316.92 244,496.10
19 1,039.11 318.27 244,177.84
20 1,037.76 319.62 243,858.22
21 1,036.40 320.98 243,537.24
22 1,035.03 322.34 243,214.90
23 1,033.66 323.71 242,891.19
24 1,032.29 325.09 242,566.10
2 Yr

---
12,476.98

---
3,811.51

 
25 1,030.91 326.47 242,239.63
26 1,029.52 327.86 241,911.78
27 1,028.13 329.25 241,582.53
28 1,026.73 330.65 241,251.88
29 1,025.32 332.05 240,919.82
30 1,023.91 333.47 240,586.36
31 1,022.49 334.88 240,251.48
32 1,021.07 336.31 239,915.17
33 1,019.64 337.73 239,577.44
34 1,018.20 339.17 239,238.27
35 1,016.76 340.61 238,897.65
36 1,015.32 342.06 238,555.59
3 Yr

---
12,277.99

---
4,010.51

 
37 1,013.86 343.51 238,212.08
38 1,012.40 344.97 237,867.11
39 1,010.94 346.44 237,520.67
40 1,009.46 347.91 237,172.76
41 1,007.98 349.39 236,823.37
42 1,006.50 350.88 236,472.49
43 1,005.01 352.37 236,120.13
44 1,003.51 353.86 235,766.26
45 1,002.01 355.37 235,410.89
46 1,000.50 356.88 235,054.02
47 998.98 358.39 234,695.62
48 997.46 359.92 234,335.70
4 Yr

---
12,068.60

---
4,219.89

 
49 995.93 361.45 233,974.26
50 994.39 362.98 233,611.27
51 992.85 364.53 233,246.75
52 991.30 366.08 232,880.67
53 989.74 367.63 232,513.04
54 988.18 369.19 232,143.84
55 986.61 370.76 231,773.08
56 985.04 372.34 231,400.74
57 983.45 373.92 231,026.82
58 981.86 375.51 230,651.31
59 980.27 377.11 230,274.20
60 978.67 378.71 229,895.49
5 Yr

---
11,848.28

---
4,440.21

 
61 977.06 380.32 229,515.18
62 975.44 381.93 229,133.24
63 973.82 383.56 228,749.68
64 972.19 385.19 228,364.49
65 970.55 386.83 227,977.67
66 968.91 388.47 227,589.20
67 967.25 390.12 227,199.08
68 965.60 391.78 226,807.30
69 963.93 393.44 226,413.86
70 962.26 395.12 226,018.74
71 960.58 396.79 225,621.95
72 958.89 398.48 225,223.47
6 Yr

---
11,616.47

---
4,672.03

 
73 957.20 400.17 224,823.29
74 955.50 401.88 224,421.42
75 953.79 403.58 224,017.83
76 952.08 405.30 223,612.53
77 950.35 407.02 223,205.51
78 948.62 408.75 222,796.76
79 946.89 410.49 222,386.27
80 945.14 412.23 221,974.04
81 943.39 413.98 221,560.06
82 941.63 415.74 221,144.31
83 939.86 417.51 220,726.80
84 938.09 419.29 220,307.52
7 Yr

---
11,372.54

---
4,915.95

 
85 936.31 421.07 219,886.45
86 934.52 422.86 219,463.59
87 932.72 424.65 219,038.94
88 930.92 426.46 218,612.48
89 929.10 428.27 218,184.21
90 927.28 430.09 217,754.12
91 925.45 431.92 217,322.20
92 923.62 433.76 216,888.44
93 921.78 435.60 216,452.84
94 919.92 437.45 216,015.39
95 918.07 439.31 215,576.08
96 916.20 441.18 215,134.91
8 Yr

---
11,115.88

---
5,172.61

 
97 914.32 443.05 214,691.86
98 912.44 444.93 214,246.92
99 910.55 446.83 213,800.10
100 908.65 448.72 213,351.37
101 906.74 450.63 212,900.74
102 904.83 452.55 212,448.20
103 902.90 454.47 211,993.73
104 900.97 456.40 211,537.32
105 899.03 458.34 211,078.98
106 897.09 460.29 210,618.70
107 895.13 462.24 210,156.45
108 893.16 464.21 209,692.24
9 Yr

---
10,845.83

---
5,442.67

 
109 891.19 466.18 209,226.06
110 889.21 468.16 208,757.89
111 887.22 470.15 208,287.74
112 885.22 472.15 207,815.59
113 883.22 474.16 207,341.43
114 881.20 476.17 206,865.26
115 879.18 478.20 206,387.06
116 877.15 480.23 205,906.83
117 875.10 482.27 205,424.56
118 873.05 484.32 204,940.24
119 871.00 486.38 204,453.86
120 868.93 488.45 203,965.42
10 Yr

---
10,561.67

---
5,726.82

 
  Interests Principal  
Total 116,850.35 46,034.58 203,965.42
Payment Schedule After Refinancing
No Interests Principal Balance
1 881.27 297.28 229,598.21
2 880.13 298.42 229,299.79
3 878.98 299.56 229,000.23
4 877.83 300.71 228,699.52
5 876.68 301.86 228,397.65
6 875.52 303.02 228,094.63
7 874.36 304.18 227,790.45
8 873.20 305.35 227,485.10
9 872.03 306.52 227,178.58
10 870.85 307.70 226,870.88
11 869.67 308.87 226,562.01
12 868.49 310.06 226,251.95
1 Yr

---
10,499.01

---
3,643.54

 
13 867.30 311.25 225,940.70
14 866.11 312.44 225,628.26
15 864.91 313.64 225,314.63
16 863.71 314.84 224,999.78
17 862.50 316.05 224,683.74
18 861.29 317.26 224,366.48
19 860.07 318.47 224,048.00
20 858.85 319.70 223,728.31
21 857.63 320.92 223,407.39
22 856.39 322.15 223,085.24
23 855.16 323.39 222,761.85
24 853.92 324.63 222,437.22
2 Yr

---
10,327.83

---
3,814.73

 
25 852.68 325.87 222,111.35
26 851.43 327.12 221,784.23
27 850.17 328.37 221,455.86
28 848.91 329.63 221,126.23
29 847.65 330.90 220,795.33
30 846.38 332.16 220,463.17
31 845.11 333.44 220,129.73
32 843.83 334.72 219,795.02
33 842.55 336.00 219,459.02
34 841.26 337.29 219,121.73
35 839.97 338.58 218,783.15
36 838.67 339.88 218,443.27
3 Yr

---
10,148.60

---
3,993.95

 
37 837.37 341.18 218,102.09
38 836.06 342.49 217,759.60
39 834.75 343.80 217,415.80
40 833.43 345.12 217,070.68
41 832.10 346.44 216,724.24
42 830.78 347.77 216,376.47
43 829.44 349.10 216,027.37
44 828.10 350.44 215,676.93
45 826.76 351.78 215,325.14
46 825.41 353.13 214,972.01
47 824.06 354.49 214,617.52
48 822.70 355.85 214,261.68
4 Yr

---
9,960.96

---
4,181.60

 
49 821.34 357.21 213,904.47
50 819.97 358.58 213,545.89
51 818.59 359.95 213,185.93
52 817.21 361.33 212,824.60
53 815.83 362.72 212,461.88
54 814.44 364.11 212,097.77
55 813.04 365.50 211,732.27
56 811.64 366.91 211,365.36
57 810.23 368.31 210,997.05
58 808.82 369.72 210,627.33
59 807.40 371.14 210,256.18
60 805.98 372.56 209,883.62
5 Yr

---
9,764.50

---
4,378.06

 
  Interests Principal  
Total 50,700.90 20,011.88 209,883.62
DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.

 




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