Refinance Break-Even Point Calculator. Calculate the number of months to break -even if you refinance the loan. Current Monthly Payment. New Loan Amount. Refinance Break-Even Point Calculator. Calculate the number of months to break -even if you refinance the loan. Current Monthly Payment. New Loan Amount. Should you refinance your mortgage? Use this calculator to determine when you will break even on a mortgage refinance. Refinance Break-Even Point Calculator. Calculate the number of months to break -even if you refinance the loan. Current Monthly Payment. New Loan Amount. Calculate the number of months to break-even if you refinance the loan. *, Current Monthly Payment: $. *, New Loan Amount: Refinance Break-Even Point Calculator. Calculate the number of months to break -even if you refinance the loan. Current Monthly Payment. New Loan Amount.
Refinance Break-Even Point Calculator. Calculate the number of months to break -even if you refinance the loan. Current Monthly Payment. New Loan Amount. How long will it take to break even on a mortgage refinance? This is the number of points paid to the lender to reduce the interest rate on the mortgage. How long will it take to break even on a mortgage refinance? paid: This is the number of points paid to the lender to reduce the interest rate on the mortgage. Try our easy-to-use refinance calculator and see if you could save by refinancing. Estimate your new monthly mortgage payment, savings and breakeven point.
To make a rough measure of your break-even point, divide costs by savings. For example, the total costs of your refinance are $4500. You will save $200 per month by refinancing. Dividing $4500 by $200, you get 22.5, which is the number of months it will take you to break even – just under two years. If the borrower were to negotiate for one point instead of two, it would decrease the investment/closing cost and reduce the time to reach the break-even point to 66 months. A borrower might also be countered with a better reduction in rate, say 4.55% for two points instead, which would result in a monthly payment of $1,019.32, saving $54.32 every month. Using this rule of thumb, you may decide that you should refinance if you’ll keep your loan for at least 20 months -- after that, you’re ahead by $100 per month. Most people who use this approach suggest that it makes sense to refinance if your breakeven point is within two years or so, and that’s not terrible advice. Calculate the break-even point on a mortgage refinance Now, it’s time to calculate how many months it will take to break even. Do it by dividing the total loan costs by the monthly savings. Break-even point analysis is a measurement system that calculates the margin of safety by comparing the amount of revenues or units that must be sold to cover fixed and variable costs associated with making the sales. In other words, it’s a way to calculate when a project will be profitable by equating its total revenues with its total expenses. Mortgage Points Calculator (11a) Break-Even Period on Paying Points on Fixed-Rate Mortgages Who This Calculator is For: Borrowers who want to know whether they will save or lose money over a specified period by paying points in order to reduce the interest rate on an FRM. On a $200,000 loan, purchasing one point brings the mortgage rate from 4.1% to 3.85%, dropping the monthly payment from $957 to $938 — a monthly saving of $19. The cost: $2,000. The calculator divides the cost by the monthly savings amount to find the break-even point.
Tip: The break-even point is when your total savings exceed the cost of paying for mortgage points at closing. If you sell or refinance the home before reaching
When Does It Make Sense to Refinance? Know the Break-Even Point and Interest Costs for Your Situation. Refinance Break-Even Point Calculator. Calculate the number of months to break -even if you refinance the loan. Current Monthly Payment. New Loan Amount.