M.J. (Merri-Jane Lani) Viglizzo NMLS 93606
Mortgage Advisor
M.J. (Merri-Jane Lani) Viglizzo NMLS 93606

Office: 831-751-2209
Fax: 415-464-2603

Should I Refinance?

Input Information
  Before Refinancing After Refinancing
Amount : ($)
Interest Rate : (%) (%)
Length : (Yrs) (Yrs)
Months Paid : (Mts)
Years Before Sell : (Yrs)
Fees and Points
Points : (%)
Origination Fees : (%)
Closing Costs : ($)
Your Taxes Rates
Tax Rate : (%)
State Tax Rate : (%)
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Name :
Phone # :

Financial Analysis (Switch to Plain English)
  Before Refinancing After Refinancing
Monthly Payment : $1,342.05 $1,163.21
Total Monthly Payments : $80,523.24 $69,792.40
Monthly Payment Savings : $10,730.84
Total Interests Paid : $54,306.57 $49,493.47
Tax Savings : $16,835.04 $15,342.98
Tax Saving Losses : $1,492.06
Balance at Refinance : $229,571.83
Points Value : $2,295.72
Refinance amount : $229,571.83
Balance at Sale : $203,355.16 $209,272.90
Balance Losses : $5,917.74
Total Losses : $7,409.80
Total Closing Costs : $3,495.72
Total Savings : $10,730.84
Total Benefit
(Savings - Losses - Closing) : 		$-174.68
Plain English Help (Switch to Financial Analysis)

Deciding whether or not you should refinance your home mortgage depends upon several factors. It also depends upon whether you are looking to simply reduce your monthly payment or if you are hoping to save money in the long run.

To understand better, let's look at an example. If your original 30 years loan was for $250,000.00 with a 5.000% interest, and you have already paid on it for 60 months, it will reduce your monthly payment if you refinance for a new 30 years period but with a 4.500% interest rate.

If your Federal tax rate is 26.000% and your state tax rate is 5.000%, you were probably paying $1,342.05 per month toward your home. When you refinance at the new rate, you will pay $1,163.21 instead, but your tax benefits will also be affected by this change.

The bottom line is:

  • you will lose $1,492.06 on tax savings (lesser tax benefit is worse)
  • your remaining balance will be $5,917.74 bigger because you will pay less toward your mortgage principal (bigger principal is worse)
  • closing your refinancing process will cost you $3,495.72

Summing up these numbers, we can figure out your total refinancing LOSSES, which will be $174.68.