Refinance Break-Even Point Calculator


Are you interested in using a free home refinance calculator?

Most homeowners simply cannot wait to recoup costs on their loans. But how long is that going to take? Take a moment and take advantage of our refinance break-even point calculator to discover just how soon you will break even!

Understanding the Home Refinancing Calculator

If you’re considering a VA refinance there are certain facts that you need to review, compare and ponder.  Sure, current rates might be a lower, but how low do they have to go in order to make the refinance worthwhile?  A basic home refinance calculator can help you decide.  This calculator doesn’t replace the advice you’ll get from one of our loan officers but it is a great place to start. This home refinance calculator can tell you when your recoup cost point is when you refinance.

The Home Refinance Calculator Components

Current Monthly Payment

This is the monthly payment you make each month presently.  Make sure you enter in the principal and interest payment only and not any amounts for homeowners insurance, HOA dues or property taxes.

New Loan Amount

Enter the amount you’re considering borrowing. This amount may be lower or higher as the process moves on and you will have the option of paying for your closing costs out of pocket or including them in your loan amount.

New Interest Rate

This part of the refinance calculator is for the new rate that you’re considering.  Remember though that until your loan amount is locked and approved these rates may change daily.

Loan Term

The loan term is your amortization period, in years, that you select.  If you want a 30 year mortgage, enter “30” or if you want a 20 year loan, enter “20.”

Closing Costs

In this field you will enter the approximate amount of closing costs necessary for your home refinance.  You can get this information from your loan officer who will be happy to provide you with an estimate.

After you’ve entered all your information, simply hit the “Calculate” button to receive your break-even point in months along with your New Monthly Payment and Monthly Savings.

If you’d like to run more scenarios, click the “Re-Calculate With New Input” button or you may print out your results on your printer by clicking “Print.”

There is no firm “ideal” number of months that would make a refinance worthwhile, that’s something for you and your loan officer to decide.  Essentially, as long as you own the property longer than it takes to break even, then it might be something to consider.

There are other reasons to use a home refinance calculator other than finding a recoup cost period. For example, say you want to shorten the term on your current mortgage from a 30 year fixed rate VA loan to a 15 year fixed rate VA loan. When you shorten your loan term you’re saving money on long-term interest and closing costs are less of a concern.

However, many loan officers will tell you that a comfortable recoup cost period is no more than 84 months (7 years).

So take some time and run some numbers here on our calculator and when you have more questions or would like more options, call us directly at 800-211-4940 or contact us online.

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