Refinance- To do? OR Not To Do?

Should I refinance?

When you refinance at a lower interest rate, you usually pay refinancing costs including points, fees, and closing costs. This calculator will tell you if the amount you save in interest will exceed these refinancing costs. The calculated results depend on how long you plan to keep this property.

Existing Loan
	Original loan amount
	Original mortgage length	MonthsYears
	Date of loan	JanFebMarAprMayJunJulAugSepOctNovDec 1984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014
	Current interest rate
New Loan
	Amount you wish to cash out upon refinance
	New interest rate
	Points
	Fees and closing costs
	New loan term	MonthsYears
Other Information
	Your income tax rate
	Your savings rate (or investment rate of return)
	How long you will keep this property	MonthsYears

Graph
Current Payment Schedule
Refinance Payment Schedule

Refinancing will immediately cost you $2,000.00 to cover the loan origination fees. It will take 31 months before the savings in interest offsets the origination fees. If you plan to stay at this property for 15 years, you will save $9,337.31.

Financial Details Current Loan Refinance Savings Monthly Payment $1,073.64 $1,025.29 $48.35 Origination Cost $2,000.00 ($2,000.00) Total Loan Cost (PV) $329,023.96 $319,686.65 $9,337.31

Make sure it makes since for you to refinance.  If you roll the closing costs into the loan it typically take between 2-3 years to break even on the costs.  If you are only staying for a year or so, this typically is not beneficial.    Rates are still low, but slightly on the rise.  Contact a mortgage loan officer today for more accurate information.  In the mean time, fill in your loan information to see if this is the right move for you today:

http://www.timevalue.com/products/tcalc-financial-calculators/refinance-calculator.aspx