HELP - Refinance Calculator - Rieger Final

The "Should I Refinance?" calculator will help you determine whether refinancing your loan for a lower interest rate is a wise decision for you. While a lower interest rate will mean lower monthly payments and less total interest, a refinance will also mean paying closing costs and, in some cases, points. If the monthly savings exceeds these closing costs, refinancing is a good option. To determine how many months it will take to break even with closing costs, you'll need to enter your loan details into the calculator using the diamond-shaped sliders or by entering the exact numbers in the Current Loan section. Note: The examples below are based on the assumption that the calculator is refreshed with the default values loaded.
Current Loan
Loan Amount	This is the amount of your current loan. Use the diamond-shaped slider to enter the value or enter it directly in the edit box.
Loan Rate	This is the interest rate of your current loan. Use the diamond-shaped slider to enter the value or enter it directly in the edit box.
Loan Term	The Loan term is the length of time that your loan is for. Use the diamond-shaped slider to enter the value or enter it directly in the edit box.
Months Paid	Months paid is the number of months that you have made payments on the loan thus far. Use the diamond-shaped slider to enter the value or enter it directly in the edit box.
New Loan
The calculator figures how much loan you still have to pay and puts it in the Loan Balance result.
Loan Rate	This is the interest rate of the new loan you are considering. Use the diamond-shaped slider to enter the value or enter it directly in the edit box. You may ask, 'if I can get an interest rate of 8%, what will my monthly payment be?' Or 'How much would a loan with a 7.25 lower my current monthly payment?
Loan Term	This is the length of time you want the new loan to be. Use the diamond-shaped slider to enter the value or enter it directly in the edit box. You might ask yourself, 'Will a 15 year loan lower my monthly payment?' or 'If I change to a 15 year loan will I have any monthly savings?'
Points	Points are prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount (e.g., two points on a $100,000 mortgage would cost $2,000). You might ask, 'Should I pay 2 or 3 points?' or
Other Costs	Other costs are also known as closing costs. Closing costs are expenses incurred by buyers and sellers in transferring ownership of a property. These may include an origination fee, taxes, the costs of obtaining title insurance, transfer fees, etc. They can often total several, or many, thousands of dollars. You may need to consult a loan officer for an estimate, or use our default of $3,000. You can use the diamond-shaped slider to enter a value or use the edit box to enter a more precise number. You might wonder, 'Will I see any monthly savings if I have $4,000 in other costs associated with the new loan?' or 'How will $2,000 in other costs affect my monthly savings if I go with the new loan?'
Savings Rate	Most borrowers choose to roll closing costs and points into the loan balance; however, if you choose to pay those costs out-of-pocket, we suggest you also type in your savings interest rate. We can then determine how much interest you will lose by taking that money out of your savings. You can use the diamond-shaped slider to enter a value or use the edit box to enter a more precise number. You might ask, 'If my savings account earns 7% should I take money out to pay for the points and other costs of the new loan, or roll these amounts into the loan?' or
Monthly Payment	In the monthly payment results, compare your monthly payment amounts between your current loan and your proposed, new loan.
Interest Paid	Compare the total interest you will pay over the life of the loans.
Savings Graph Grab the diamond at the bottom of the graph and slide it to a vertical year line. The dynamic read-out shows your cumulative cost savings up to that year. The break-even point is where the lines intersect. You need to keep your existing loan until the break-even point in order for the refinance to be a wise decision. In other words, at that time, the closing costs are equal to your cumulative monthly savings. For instance, if you intend to stay in the home for at least 2 years, and the break even point is less than 2 years, then refinancing will save you money. If you plan to stay in the home for a maximum of 2 years and the break even point is more than 2 years, then you will lose money with a refinance.