Refinance Calculator

Guide for the Refinancing Calculator

1. Overview

Refinancing your mortgage can be an effective way to reduce your monthly payments or lower the total interest paid over time. The Refinancing Calculator is designed to provide a side-by-side comparison of your existing loan versus a new loan under updated terms. In particular, it calculates:

• New Monthly Mortgage Payment: Using the new loan’s interest rate and term.
• Total Interest Savings: The difference between the remaining interest on your current loan and the interest on the new loan (after accounting for refinancing costs).
• Break-even Point: The number of months required for the monthly savings to offset the refinancing costs.
• Interest Comparison: A clear comparison of the total interest that would be paid under the current and new loan terms.

2. Key Inputs and Outputs

Inputs:

• Current Mortgage Balance ($): The remaining principal on your existing mortgage.
• Current Interest Rate (%): The annual interest rate on your current loan.
• Remaining Loan Term (years): The number of years left on your current mortgage.
• New Loan Interest Rate (%): The annual interest rate for the new loan.
• New Loan Term (years): The duration of the new mortgage.
• Refinancing Costs ($): The total cost associated with refinancing (e.g., fees, appraisal, etc.).

Outputs:

• New Monthly Mortgage Payment: The estimated monthly payment for the new loan.
• Total Savings Over the Life of the Loan: Net interest savings after subtracting refinancing costs.
• Break-even Point: The number of months needed for the savings from the lower payment to cover the refinancing costs.
• Interest Savings Comparison: A breakdown of total interest remaining on the current loan versus the interest on the new loan.

3. How It Works

1. Input Your Data:
   Provide the current mortgage balance, current interest rate, remaining term, new interest rate, new loan term, and refinancing costs.

2. Calculation Process:

   • The calculator first computes your current loan’s remaining monthly payment and total remaining interest using the amortization formula.
   • It then calculates the new monthly payment based on the new loan’s terms.
   • The difference between the two monthly payments yields your monthly savings.
   • Total interest for the new loan is computed and compared to the current loan’s remaining interest to determine the interest savings.
   • The break-even point is calculated by dividing the refinancing costs by the monthly savings.
   • Finally, the tool presents the new monthly payment, net total savings (interest savings less refinancing costs), break-even period, and interest comparison.

3. View Your Results:
   Once calculated, the results will display directly on your page, allowing you to make an informed decision about refinancing.

About Atlis Property Management

At Atlis Property Management, we believe that smart financial decisions begin with clarity and insight. Our Refinancing Calculator is designed to help you optimize your mortgage financing by comparing your current loan with new options that may offer lower payments and reduced interest over time. With our suite of advanced financial tools and expert guidance, you can confidently navigate your refinancing options and maximize your long-term savings.

Take Action Today:
Visit atlispm.com to learn more about our property management services and access additional financial calculators designed to support your real estate investment journey. Let Atlis Property Management be your trusted partner in achieving smarter, more profitable mortgage solutions.