Mortgage Loan Refinance Analysis
You can use this calculator to calculate how long it takes to recover the closing costs incurred when refinancing a mortgage, as well as the estimated savings from refinancing (including the difference in total interest to be paid on the new loan compared to the interest remaining to be paid on the existing loan).
To open this calculator, click Calculators in the toolbar, and then click Mortgage > Mortgage Loan Refinance Analysis in the left panel.
You can export the data as a PDF file or clear all data that you entered. For more information, see Financial calculators.
Example
How much interest can you save by refinancing a home loan?
Field | Input |
---|---|
Year | 2019 |
Month | September |
Current loan field | Input |
---|---|
Year loan originated | 2004 |
Month loan originated | February |
Original loan amount | $250,000 |
Term of loan | 30 years |
Interest rate | 6.50% |
Federal and state tax rate | 35% |
Is interest deductible? | Yes |
New loan field | Input |
---|---|
Are closing costs added to loan? | No |
Term of loan | 15 |
Interest rate | 4.125% |
Other closing costs | $4,000 |
In this example, the net savings from refinancing is $19,569.00. In addition, the difference in the monthly payment is reduced $254.00 and the Number of months to recover closing costs is 16.
Internal notes
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