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  • Atricle Dump - Breaking Even On Your Refinance

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    monthly payment will be.

    New Interest Rate

    This is the new interest rate you are being offered.

    New Monthly Payment

    This is your new monthly payment. If you take a lot of cash out on your new loan

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    Loan Factors

    Here are some basic mortgage loan expenses:

    • cash out
    • loan closing costs
    • new loan balance
    • new loan term in years
    • new interest rate
    • new monthly payment
    • monthly savings
    Cash Out

    This is the most basic factor to include. This is often a borrower's primary motive in doing a refinance.

    Loan Closing Costs

    These are the closing costs for getting your new loan. These include lender charges as well as any prepayment penalties.

    New Loan Balance

    This is the new loan balance you have after you add your old mortgage balance, additional cash taken out, and your closing costs.

    New Loan Term In Years

    This is the time frame for your new loan. If you switch to a 50 year term your monthly payment may go down even though your total loan size has gone up. This is because the longer you take to pay a mortgage back the lower your monthly payment will be.

    New Interest Rate

    This is the new interest rate you are being offered.

    New Monthly Payment

    This is your new monthly payment. If you take a lot of cash out on your new loan

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    l>Cash Out

    This is the most basic factor to include. This is often a borrower's primary motive in doing a refinance.

    Loan Closing Costs

    These are the closing costs for getting your new loan. These include lender charges as well as any prepayment penalties.

    New Loan Balance

    This is the new loan balance you have after you add your old mortgage balance, additional cash taken out, and your closing costs.

    New Loan Term In Years

    This is the time frame for your new loan. If you switch to a 50 year term your monthly payment may go down even though your total loan size has gone up. This is because the longer you take to pay a mortgage back the lower your monthly payment will be.

    New Interest Rate

    This is the new interest rate you are being offered.

    New Monthly Payment

    This is your new monthly payment. If you take a lot of cash out on your new loan

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    e lender charges as well as any prepayment penalties.

    New Loan Balance

    This is the new loan balance you have after you add your old mortgage balance, additional cash taken out, and your closing costs.

    New Loan Term In Years

    This is the time frame for your new loan. If you switch to a 50 year term your monthly payment may go down even though your total loan size has gone up. This is because the longer you take to pay a mortgage back the lower your monthly payment will be.

    New Interest Rate

    This is the new interest rate you are being offered.

    New Monthly Payment

    This is your new monthly payment. If you take a lot of cash out on your new loan

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    erm In Years

    This is the time frame for your new loan. If you switch to a 50 year term your monthly payment may go down even though your total loan size has gone up. This is because the longer you take to pay a mortgage back the lower your monthly payment will be.

    New Interest Rate

    This is the new interest rate you are being offered.

    New Monthly Payment

    This is your new monthly payment. If you take a lot of cash out on your new loan

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    monthly payment will be.

    New Interest Rate

    This is the new interest rate you are being offered.

    New Monthly Payment

    This is your new monthly payment. If you take a lot of cash out on your new loan you may end up with a higher monthly payemnt.

    In this case, there is no "break even" because you have increased your monthly mortgage payment instead of decreasing it.

    Monthly Savings

    This is the decline in your monthly payment. You can divide your monthly savings by your total closing costs to see how long it will take you to break even.

    For example, if your monthly mortgage savings are $500 per month and your closing costs are $5,000 then you will break even in 10 months ($5,000 closing costs divided by $500 per month in savings).

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