Refinancing Your Mortgage -- Closing Costs versus Loan Prepayment Calculator

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This calculator helps to answer one simple question -- if you have a little cash, it is better to use it to refinance to one of the current super low rates, or simply use it to pay down your mortgage. So if it would cost $1,000 to refinance from 6.5% to 4.5% right now, should you do it, or take that money and just lower your current balance. There is always a point at which the refinance will start saving you money. The question is if you will still own the loan when that happens and for how long you will keep it. If the breakeven point is within two years and you hold the loan a long time, it is definitely worth it. If the breakeven point is in 5 or more years and you probably won't hold the loan much longer than that, you should just take the closing costs money and pay down the loan. I calculate my breakeven point as the point when your loan balance on your refinanced loan minus all your none deductible interest payment savings (all the cumulative non-deductible interest you've saved) drops below the loan balance on your existing loan after lowered by the lump sum prepayment. (When the red "HOLD" changes to the green REFI).

You can also try using my older, more generic refinancing and loan comparison calculator.
Current monthly payment (principal & interest only)
Current Mortgage Annual Loan Interest Rate
Refinanced Loan Interest Rate
Refinancing Closing Costs and Points
Refinanced Loan Length Years
Current Loan Balance
Loan Interest Deductibility
Expected Long Term Tax Rate (%) (Federal+State)