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| Annual income |
Your annual income. For married couples this is your total combined annual
income |
| Appraised value |
The appraised value of your home when you purchased it. |
| Break even monthly payment savings |
The number of months it will take for your monthly payment reduction to be greater than your closing costs. |
| Break even PMI & interest savings |
The number of months it will take for your interest and PMI savings to exceed your and closing
costs |
Break even total savings
after tax |
The number of months it will take for your after tax interest and PMI savings to exceed your closing costs. |
Break even total savings
vs. prepayment |
This is the most conservative break even measure. It is the number of months it will take for your after tax interest and PMI savings to exceed both your closing costs and any interest savings from prepaying your mortgage. The prepayment amount used in this calculation is the amount that you would have to spend on closing costs. |
| Calculate balance |
To let the calculator determine your remaining balance, based on your original loan information and years remaining, check this box. To enter your own amount, leave this box unchecked. |
| Cash on hand |
Cash you have for the down payment and all closing costs. |
| Credit card payments |
Total monthly minimum payments for your credit cards. |
| Current Appraised value |
The current appraised value of your home. |
| Current payment |
Your current payment is the sum of principal, interest and
PMI. Because refinancing does not affect your insurance or taxes they are not included here. |
| Current term in years |
Total length of your current mortgage in years. |
| Expected inflation rate: |
Inflation rate used to adjust amounts subject to annual increases. This includes rent, insurance and tax payments. |
| Home appreciates at: |
Annual appreciation you expect in the home you are purchasing. |
| Home insurance rate |
Your homeowner's insurance rate. 0.5% for a $100,000 home equals $500 per in for homeowner's insurance. |
| Home sales commission: |
The percent of your homes selling price you expect to pay to a broker or real estate agent when you sell your home. |
| House payment: |
Total of principal, interest, taxes and insurance paid per month for your home. Insurance includes PMI and homeowner. |
| Income tax rate |
Your current income tax rate. |
| Interest rate |
Annual interest rate for your mortgage. Interest rates are generally lower for shorter term mortgages. |
| Investment return: |
Annual percentage return you would receive if you invested your closing costs and down payment instead of purchasing a home. |
| Limit down payment to 20% |
Limit down payment to 20% of the purchase price. Even if you have more cash on hand than required for closing costs and a 20% down payment. |
| Loan amount: |
Total amount of loan. |
| Loan balance |
Balance of your mortgage that will be refinanced. |
| Loan origination rate |
The percentage the lending institution charges for its origination fee. 1% for a $100,000 home equals $1,000. |
| Loan origination rate |
This is the percentage of the new mortgage that is paid to the lender as the loan origination fee.
Typically this fee is 1% of the loan balance. |
| Marginal tax rate |
This is your combined state and federal tax rate. This is used to calculate your potential income tax
savings by deducting your mortgage interest. |
| Monthly car
payment(s) |
Total monthly payment for your car loan(s). |
| Monthly payment |
Monthly principal and interest payment (PI). Both 30 year and 15 year mortgages are shown. |
| Monthly PMI payment |
Monthly cost of Principal Mortgage insurance
(PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year. Monthly PMI is calculated by multiplying your starting loan balance by this percent and dividing by 12. When your loan balance exceeds 20% of the original purchase price, your PMI payment drops to zero. |
| Monthly rent payment: |
Amount you currently pay for rent per month. |
| Mortgage amount |
Original or expected balance for your mortgage. |
| Net home price: |
Net selling price of your home after subtracting any sales commissions. |
| Net house payment: |
Your house payment minus the value of the tax deduction and principal payment. |
| New interest rate |
The annual interest rate for the new loan. |
| New payment |
Your new payment is the sum of principal, interest and
PMI |
| New term in years |
Number of years for your new loan. |
| Number of points paid |
The total number of points paid to reduce the interest rate of your mortgage. Each point costs 1% of your mortgage balance. |
| Original mortgage amount |
Original amount of your mortgage. |
| Other closing costs |
Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other misc. fees paid. |
| Other loan payments |
Any other installment loan payments, such as student loans or unsecured loans. |
| PITI percent of annual income |
Not shown. This is the percent of your annual income your financial institution allows you to use for your "Principal, Interest, Tax and Insurance" payment for your home. The default rate is 28%. |
| Points paid |
This is the number of points paid to the lender to reduce the interest rate on the mortgage. Each point costs 1% of the new loan amount. |
| Price of home: |
Purchase price of the home you wish to buy |
| Principal payment: |
Total of principal paid per month on your mortgage. |
| Property tax rate |
Your property tax rate. 1% for a $100,000 home equals $1,000 per year in property taxes. |
| Purchase price |
The price of the home you wish to purchase. This is the actual price you pay, not including any closing costs. |
| Qualify amount |
Shown as "Total monthly payment." This is the total amount you qualify for per month. This amount is the total of "Principal, Interest, Tax and Insurance" for your home. |
| Show schedule by month |
Display the payment schedule by month when you press the Payment Schedule button. |
| Show schedule by year |
Display the payment schedule by year when you press the Payment Schedule button. |
| Tax savings: |
The value of the tax deduction you receive on your mortgage's interest and home's property taxes. For example, if you have $900 in interest and $100 property taxes per month, the value of the tax deduction would be $280. (At a tax rate of 28%) |
| Term in years |
The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years. |
| Total closing costs |
Total up front costs to close your loan. This is the total of your loan origination fee, points paid and other closing costs. |
| Total debt percent of annual income |
Not shown. This is the percent of your annual income your financial institution allows you to use for installment payments debt. This includes car payments, credit card payments, other loan payments and your "Principal, Interest, Tax and Insurance" payment for your home. The default rate is 36%. |
| Total for down payment |
Total funds remaining, after closing costs, for down payment. |
| Total interest |
Total of all interest paid over the full term of the mortgage. Both 30 year and 15 year mortgages are shown. |
| Total monthly payment |
Total monthly payment that you can qualify for. This is the total of principal, interest, taxes and insurance paid each month. Often called
PITI. |
| Total payments |
Total of all monthly payments over the full term of the mortgage. Both 30 year and 15 year mortgages are shown. |
| Years remaining |
Number of years remaining on your current mortgage. |
