This refinance calculator compares the benefits of keeping your current balloon payment mortgage with the cost and benefits of refinancing into a new mortgage. To evaluate your refinance, calculate any refinance savings, and determine when you will break-even on your mortgage refinance, enter your information or explore the examples.

Refinance To Reduce Risk

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- Balloon Term
- The Balloon term is the length of time after which the remaining principal balance on your mortgage is due. Mortgages usually have a balloon term that is the same as the amortization term. Your final payment for those mortgage may be slightly different. Mortgages where the balloon term is shorter than the amortization term are called balloon mortgages. These typically result in a very large final required payment and, thus, are much riskier mortgages.
- Break-Even
- The break-even point is the amount of time it will take for your mortgage savings to equal the amount you paid up front. The break-even point for your refinance is the amount of time it will take for your refinance savings to equal the cost of your refinance. The break-even for paying discount points is the amount of time it will take for your savings to equal the amount you paid for points
- Cash Out
- The amount of money the borrower will receive after closing the loan. This is more common for refinances than for purchases.
- Income Tax Rate
- Your marginal income tax rate is the rate at which any additional dollars of your income would be taxed at.
- Interest
- The portion of your mortgage payment that is due to the interest rate being applied to the principal balance. The Total Interest for a mortgage is the sum of all interest paid over the life of a loan.
- Interest Rate
- The percentage of the principal balance of your mortgage that determines how much interest you must pay. The interest rate on your mortgage may change or remain the same depending on the type of loan you have.
- Investment Earnings
- Your investment earnings are the average annual percentage rate you expect to earn on your investments.
- Loan Amount
- The initial principal balance or your mortgage at closing.
- Principal
- The portion of your mortgage payment that is used to pay down the current balance of your mortgage. The principal balance represents how much you owe on the mortgage.
- Refinance Fees
- All closing costs for the new mortgage, including any discount points, loan origination fees, appraisal fees, title insurance, etc...
- Refinance Savings/(Loss)
- The refinance savings/(loss) estimates how a refinance will impact your financially.
- Term
- The amortization term is one of the key factors that determine your required mortgage payment. Your required mortgage payment for fully amortizing mortgages is the amount that would result in the mortgage being closest to being paid off by the end of the amortization term. Longer amortization terms result in lower required mortgage payments for fully amortizating mortgages, all other things being equal.