Should I Refinance? Calculator | HomeMortgage.com

Should I Refinance?

The "Should I Refinance?" Calculator is for those who are considering refinancing but are unsure as to whether or not they will benefit. Depending on whether you want to acquire lower monthly rates right now, or enjoy more substantial savings in the long run, this refinance mortgage calculator will help you determine whether you'll benefit from refinancing a mortgage or take a loss and can help identify how monthly payments stack up within the duration of the mortgage term.

As mortgage rates hit historical lows, homeowners worldwide compare mortgage refinance rates side by side. Our powerful online calculator enables homeowners like you to see the possibilities, make an informed decision, and decide whether to take advantage of the money saving options associated with refinancing.

How to Figure Out If You Should Refinance

Simply input your current loan, tax rate, and points and fees info, and the "Should I Refinance?" Calculator will figure out if refinancing is really the right solution for your household. Your tax benefits can actually suffer from refinancing, so it's important to make sure you're saving more in the long run. If you find this calculator to be helpful - this is only the tip of the iceberg -- HomeMortgage.com features the most comprehensive set of mortgage calculators on the web!


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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Name :
Phone # :

Financial Analysis (Switch to Plain English)
  Before Refinancing After Refinancing
Monthly Payment : $1,342.05 $1,163.21
Total Monthly Payments : $80,523.24 $69,792.40
Monthly Payment Savings : $10,730.84
Total Interests Paid : $54,306.57 $49,493.47
Tax Savings : $16,835.04 $15,342.98
Tax Saving Losses : $1,492.06
Balance at Refinance : $229,571.83
Points Value : $2,295.72
Refinance amount : $229,571.83
Balance at Sale : $203,355.16 $209,272.90
Balance Losses : $5,917.74
Total Losses : $7,409.80
Total Closing Costs : $3,495.72
Total Savings : $10,730.84
Total Benefit
(Savings - Losses - Closing) : 		$-174.68
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 5.000% 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 4.500% interest rate.

If your Federal tax rate is 26.000% and your state tax rate is 5.000%, you were probably paying $1,342.05 per month toward your home. When you refinance at the new rate, you will pay $1,163.21 instead, but your tax benefits will also be affected by this change.

The bottom line is:

  • you will lose $1,492.06 on tax savings (lesser tax benefit is worse)
  • your remaining balance will be $5,917.74 bigger because you will pay less toward your mortgage principal (bigger principal is worse)
  • closing your refinancing process will cost you $3,495.72

Summing up these numbers, we can figure out your total refinancing LOSSES, which will be $174.68.

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.