Definitions

Original mortgage amount

Original amount of your mortgage.

Appraised value

The appraised value of your home when you purchased it.

Current interest rate

The annual interest rate for the original loan.

Current term in years

Total length of your current mortgage in years.

Years remaining

Number of years remaining on your current mortgage.

Income tax rate

Your current income tax rate. Use the table below to assist you in estimating your Federal 2024 tax rate.

2025 Federal Income Tax Brackets and Rates for Single Filers, Married Couples Filing Jointly, and Heads of Households
Tax Rate	For Single Filers	For Married Individuals Filing Joint Returns	For Heads of Households
10%	$0 to $11,925	$0 to $23,850	$0 to $17,000
12%	$11,925 to $48,475	$23,850 to $96,950	$17,000 to $64,850
22%	$48,475 to $103,350	$96,950 to $206,700	$64,850 to $103,350
24%	$103,350 to $197,300	$206,700 to $394,600	$103,350 to $197,300
32%	$197,300 to $250,525	$394,600 to $501,050	$197,300 to $250,500
35%	$250,525 to $626,350	$501,050 to $751,600	$250,500 to $626,350
37%	$626,350 or more	$751,600 or more	$626,350 or more
Source: Internal Revenue Service. Tables from https://taxfoundation.org/data/all/federal/2025-tax-brackets/

Calculate balance

To let the calculator determine your remaining balance, based on your original loan information and years remaining, check this box. To enter your own amount, leave this box unchecked.

Current appraised value

The current appraised value of your home.

Loan balance

Balance of your mortgage that will be refinanced.

New interest rate

The annual interest rate for the new loan.

New term in years

Number of years for your new loan.

Loan origination rate

This is the percentage of the new mortgage that is paid to the lender as the loan origination fee. Typically, this fee is 1% of the loan balance.

Points paid

This is the number of points paid to the lender to reduce the interest rate on the mortgage. Each point costs 1% of the new loan amount.

Other closing costs

Estimate of all other closing costs for this loan. This should include filing fees, appraiser fees and any other miscellaneous fees paid.

Monthly PMI payment

Monthly cost of Principal Mortgage Insurance (PMI). For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year. Monthly PMI is calculated by multiplying your starting loan balance by this percent and dividing by 12. When the equity in your home exceeds the percentage required for PMI, your PMI payment drops to zero.

Normally PMI is required if you have less than 20% equity in your home, however for the refinance of loan guaranteed by Freddie Mac or Fannie Mae you may not be required to pay PMI if your current mortgage doesn't require it. Check with your lenders for details. Check the box 'do NOT include PMI' if this applies to your refinance.

Current payment

Your current payment is the sum of principal, interest and PMI (Principal Mortgage Insurance). Because refinancing does not affect your insurance or taxes, they are not included here.

New payment

Your new payment is the sum of principal, interest and PMI.

Monthly PI payment

Monthly principal and interest payment.

Break even monthly payment savings

The number of months it will take for your monthly payment reduction to be greater than closing costs.

Break even PMI & interest savings

The number of months it will take for your interest and PMI savings to exceed your closing costs.

Break even total savings after-tax

The number of months it will take for your after-tax interest and PMI savings to exceed your closing costs.

Break even total savings vs. prepayment

This is the most conservative breakeven measure. It is the number of months it will take for your after-tax interest and PMI savings to exceed both your closing costs and any interest savings from prepaying your mortgage. The prepayment amount used in this calculation is the amount that you would have to spend on closing costs.