Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
TPO Kit
Refinance break-even calculator for loan officers.
The current loan against the one you can offer: the new payment and APR, the monthly difference, and the month the closing costs are earned back, with the restarted term counted.
Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.
Running Cost of Each Choice
APR counts every closing cost and point as a finance charge unless the lender's fees and points are entered separately.
Estimates from the inputs shown. Not a Loan Estimate or an offer to lend.
Inputs stay in this browser. Usage counts record the tool used and a few rounded figures, such as loan purpose, state and loan-amount band. No names, addresses or exact amounts.
Questions
Why are there two break-evens?
On the payment: closing costs divided by the monthly payment difference. It flatters a refinance that stretches the loan back to 30 years, because part of the lower payment is just slower repayment.
On total cost: adds up what each choice has cost from today, payments plus closing costs minus the principal paid off, and finds the first month the new loan comes out lower. It counts the restarted term and any costs added to the balance.
How is the APR worked out?
For the new loan, every closing cost counts as a finance charge unless you enter the lender's fees and points; then only that amount counts. Monthly mortgage insurance counts for the full term, since the tool has no home value. Each of these can only raise the APR. The current loan isn't being offered, so it shows no APR.
What does it leave out?
Escrow refunds and the skipped payment at closing, which move cash around but don't change the cost of either loan. Adjustable rates: both loans are treated as fixed. Cash-out: use the Loan Comparison. Mortgage insurance is treated as flat; it doesn't cancel.
These are estimates from the inputs shown, not a Loan Estimate or an offer to lend.