By
eHow Personal Finance Editor
Difficulty: Moderately Easy
Things You’ll Need:
Step1
Know your federal tax bracket.
Step2
Determine how much you anticipate saving on a monthly basis if you get a lower interest rate; do this by determining the difference between your current mortgage payment and what your payment would be at a lower interest rate.
Step3
Add in the refinancing costs, which include fees for a new title search, points you'll have to pay, the cost of an appraisal and other closing costs. (A point is 1 percent of the amount of a mortgage; borrowers often have to pay points as part of the fee for borrowing or refinancing.) Your prospective lender can provide you with this information, or you can use your original mortgage data as a basis.
Step4
Multiply your federal tax rate by the amount you could save to determine your after-tax savings.
Step5
Divide this amount into the cost of refinancing to determine how long it will take you to recoup your costs.
Comments
Event-Planner said
on 2/13/2008 Calculating Home Refinance Costs
Other things you need:
When determining the actual costs of refinancing you do well to fill out a complete mortgage refinance application form. This allows you to determine your overall monetary/liquid assets, income, debt obligations and resultant affordability of the loan.
In addition a long-term detailed home mortgage refinance cost calculator will give you a better idea of the costs over a given period of times. That said I suggest you use the refinance cost calculator in the free Home Refinance Kit located at...
refinanceloanrates.fimark.net