Should I Refinance?

Is your old APR (Annual Percentage Rate) too high? Estimate the benefits of refinancing using this calculator.


Before Refinancing

After Refinancing

Interest Rate
Months Paid
Years Before Sell

Fees and Points

Origination Fees
Closing Costs

Your Taxes Rates

Tax Rate
State Tax Rate

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  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)

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.

Disclaimers: The information provided by these calculators is for illustrative purposes only. There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. The default figures shown are hypothetical and may not be applicable to your individual situation. The calculated results are also intended for illustrative purposes only and accuracy is not guaranteed. There is not tax or financial advice given. Default and calculated tax data are for illustrative purposes only. Be sure to consult a tax or financial professional regarding your specific situation and before relying on the results.

Any hypothetical monthly mortgage payments reflect hypothetical Principal & Interest amounts rounded to the nearest dollar amount and may not include insurance, taxes, or other possible fees. These figures and rates are for educational purposes only and do not reflect an official mortgage loan offer.

We have many other Mortgage Calculators for you to use.

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American Pacific Mortgage

Mike Bjork
Sr. Mortgage Planner
Corp NMLS #1850 | Originator NMLS #275652

Phone: 310.694.3544
Cell: 310.923.1884
Fax: 800.986.3155

100 Spectrum Center Drive, Suite 460 Irvine California, 92618


Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act

© 2015 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions apply. Equal Housing Opportunity.

The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

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