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Mortgage Refinance Calculator
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This calculator is designed to illustrate
the after-tax savings of refinancing your existing mortgage in today's
dollars. It factors in the discrepency
of the number of payments left on your current mortgage versus the new
mortgage. It also calculates the break
even number of months it will take to recoup your closing costs relative to
your new monthly payment. Finally, it
allows you to factor in additional savings (or costs) if you would like to
either take additonal cash out or pay additional cash in at closing.
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Input Variables:
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Principal Balance on Existing Mortgage
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Interest Rate on Existing Mortgage
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Remaining Term of Existing Mortgage (# of months
remaining)
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Proposed Refinance Principal Balance (Do
not include Pre-Payments or Closing Costs)
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Proposed Refinance Interest Rate
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New Term of Proposed Refinance (# of years)
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Estimated Closing Costs (Do not include Pre-Payments)
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Current Marginal Tax Rate (Federal and State)
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Discount Rate (Inflation Rate)
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Results:
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A. Calculation of Net Present Value of Principal &
Interest (After-Tax) on
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your Existing Mortgage
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Net Present Value of
After-Tax Cash Flows
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B. Calculation of Net Present Value of Principal,
Interest, & Closing Costs
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(After-Tax) on your Proposed
Mortgage Refinance
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Net Present Value of
After-Tax Cash Flows
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C. Net Benefit of Refinancing (In Today's Dollars)
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Additional Cash Received (or
Due) at Refinancing
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Net Present Value of
After-Tax Cash Flow Savings (or Costs)
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D. Calculation In Number of Months To Recoup Your Closing
Costs Via
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Interest Cost Savings
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Break Even (Months)
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