1. Current Monthly Mortgage Payment $ _________ 

2. New Monthly Mortgage Payment $ _________ 

3. Monthly Savings $ _________ 

4. Total Refinancing Costs $ _________ 

(Don’t forget to include everything in your costs, including points, legal fees, credit check inspections, etc.) 

 

5. Break-even Point (in months) __________ 

(Divide Line 4 by Line 3. This is how many months it will take to recoup refinancing costs) .

 

6. Future Time In Home (in months) ___________ 

(Example: If you plan to live in your home for three more years, enter 36 months) 

7. Total Savings (Loss) to Refinancing $ __________ 

Using the worksheet, here is an example of what a homeowner would save if he refinanced:

Scenario: A homeowner is now paying a mortgage of $1,200 per month. If he refinanced, the new mortgage payment would be $1,000 monthly, for a savings of $200 each month. His refinancing  charges would come to $1,800. That means it would take nine months before the homeowner would break even. Since this individual plans to live in the home for at least three more years, subtract the time it takes to break even from the anticipated stay and this homeowner could save $5,400, which makes refinancing a very attractive option. (The $5,400 savings = $200 a month in savings x 27 months, the length of time in the home after the break-even point).

1. Current Monthly Mortgage Payment $1,200

2. New Monthly Mortgage Payment $1,000

3. Monthly Savings $ 200

 

4. Total Refinancing Costs $1,800

(Don’t forget to include everything,  including points, legal fees, credit check, inspections, etc.)

 

5. Break-even Point _____

(Divide Line 4 by Line 3. This is how many months it will take to recoup refinancing costs.

 

6. Future Time In Home (in months) _____

(Example: If you plan to live in your home for three more years, enter 36 months)