This calculator calculates your mortgage settlement charges (or closing costs) for a given set of loan terms. The calculator lumps settlement charges into two categories: origination charges and other settlement services.
Refinancing generally makes sense if you can lower your monthly payment by enough to cover the associated settlement charges (or closing costs). Often, the break-even point for a refinance is two to three years. If you plan to sell your home within a year or so, refinancing may not make sense.
Payments are shown for principal and interest (P+I) and combined (P+I+T+I) payments. Combined payments include insurance, taxes, and private mortgage insurance where applicable.
If you enter a loan amount that is more than 80% of the home's purchase price, the calculator estimates a monthly amount for private mortgage insurance (PMI). Mortgage lenders generally require that you obtain mortgage insurance if your down payment is less than 20% of the home purchase price.