Mortgage Refinance Breakeven Point Calculator

✖Total Loan Costs encompass all the expenses associated with obtaining and maintaining a loan over its entire term.ⓘ Total Loan Costs [TLC]			+10% -10%
✖Monthly Savings refer to the reduction in expenses or costs that a person or entity experiences on a monthly basis.ⓘ Monthly Savings [MS]			+10% -10%

✖Mortgage Refinance Breakeven Point refers to the point in time when the savings generated from refinancing offset the costs associated with obtaining the new mortgage.ⓘ Mortgage Refinance Breakeven Point [MRBP]

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Formula

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Mortgage Refinance Breakeven Point

Formula

`"MRBP" = "TLC"/"MS"`

Example

`"130"="6500000"/"50000"`

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Mortgage Refinance Breakeven Point Solution

STEP 0: Pre-Calculation Summary

Formula Used

Mortgage Refinance Breakeven Point = Total Loan Costs/Monthly Savings
MRBP = TLC/MS
This formula uses 3 Variables

Variables Used

Mortgage Refinance Breakeven Point - Mortgage Refinance Breakeven Point refers to the point in time when the savings generated from refinancing offset the costs associated with obtaining the new mortgage.
Total Loan Costs - Total Loan Costs encompass all the expenses associated with obtaining and maintaining a loan over its entire term.
Monthly Savings - Monthly Savings refer to the reduction in expenses or costs that a person or entity experiences on a monthly basis.

STEP 1: Convert Input(s) to Base Unit

Total Loan Costs: 6500000 --> No Conversion Required
Monthly Savings: 50000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

MRBP = TLC/MS --> 6500000/50000

Evaluating ... ...

MRBP = 130

STEP 3: Convert Result to Output's Unit

130 --> No Conversion Required

FINAL ANSWER

130 <-- Mortgage Refinance Breakeven Point

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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Verified by Aashna

IGNOU (IGNOU), India

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Levered Free Cash Flow

Go Levered Free Cash Flow = Net Income+Depreciation and Amortization-Change in Net Working Capital-Capital Expenditure-Net Borrowing

Present Value of Outstanding Balance

Go Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum)

Home Equity Line of Credit

Go Maximum Line of Credit = Maximum Loan to Value Ratio*Appraised Fair Value of Equity-Outstanding Mortgage Balance

Breakeven Occupancy

Go Breakeven Occupancy Ratio = (Total Operating Expenses+Annual Debt Service)/Potential Gross Income

Average Payment Period

Go Average Payment Period = Average Accounts Payable/(Credit Purchases/Number of Days in Period)

Paid-in-Kind Interest

Go Paid-in-Kind Interest = Paid-in-Kind Interest Rate*Beginning PIK Debt Balance

Senior Debt Ratio

Go Senior Debt Ratio = Senior Debt/EBIT and Depreciation and Amortization

Mortgage Refinance Breakeven Point

Go Mortgage Refinance Breakeven Point = Total Loan Costs/Monthly Savings

Debt Service Coverage Ratio

Go Debt Service Coverage Ratio = Net Operating Income/Annual Debt

Mortgage Constant

Go Mortgage Constant = Annual Debt Service/Total Loan Amount

Solvency Risk Ratio

Go Solvency Risk Ratio = Total Assets/Total Long Term Debt

Loan Constant

Go Loan Constant = Annual Debt Service/Total Loan Amount

Debtor Days

Go Debtor Days = (Accounts Receivable/Credit Sales)*365

Annual Debt Service

Go Annual Debt Service = Principal+Interest Amount

Net Debt

Go Net Debt = Gross Debt-Cash and Cash Equivalents

Overhead Rate

Go Overhead Rate = Overhead Costs/Revenue

Mortgage Refinance Breakeven Point Formula

Mortgage Refinance Breakeven Point = Total Loan Costs/Monthly Savings
MRBP = TLC/MS

What is Mortgage Refinance Breakeven Point?

Mortgage Refinance Breakeven Point is the point at which the homeowner begins to benefit financially from refinancing.
Here's how it works:
Costs of Refinancing: Refinancing a mortgage typically incurs various costs, such as application fees, origination fees, appraisal fees, title insurance, and closing costs. These costs can add up to several thousand dollars.

Monthly Savings: By refinancing to a new mortgage with a lower interest rate or different terms, the homeowner can potentially reduce their monthly mortgage payments. The monthly savings are the difference between the old mortgage payment and the new, lower payment.

To calculate the Mortgage Refinance Breakeven Point, follow these steps:

Calculate Total Refinancing Costs: Add up all the costs associated with refinancing, including application fees, closing costs, and any other fees charged by the lender.
Calculate Monthly Savings: Subtract the new monthly mortgage payment from the old monthly payment to determine the monthly savings.

How to Calculate Mortgage Refinance Breakeven Point?

Mortgage Refinance Breakeven Point calculator uses Mortgage Refinance Breakeven Point = Total Loan Costs/Monthly Savings to calculate the Mortgage Refinance Breakeven Point, The Mortgage Refinance Breakeven Point is the point in time at which the savings from refinancing a mortgage equal the costs associated with refinancing. Mortgage Refinance Breakeven Point is denoted by MRBP symbol.

How to calculate Mortgage Refinance Breakeven Point using this online calculator? To use this online calculator for Mortgage Refinance Breakeven Point, enter Total Loan Costs (TLC) & Monthly Savings (MS) and hit the calculate button. Here is how the Mortgage Refinance Breakeven Point calculation can be explained with given input values -> 130 = 6500000/50000.

FAQ

What is Mortgage Refinance Breakeven Point?

The Mortgage Refinance Breakeven Point is the point in time at which the savings from refinancing a mortgage equal the costs associated with refinancing and is represented as MRBP = TLC/MS or Mortgage Refinance Breakeven Point = Total Loan Costs/Monthly Savings. Total Loan Costs encompass all the expenses associated with obtaining and maintaining a loan over its entire term & Monthly Savings refer to the reduction in expenses or costs that a person or entity experiences on a monthly basis.

How to calculate Mortgage Refinance Breakeven Point?

The Mortgage Refinance Breakeven Point is the point in time at which the savings from refinancing a mortgage equal the costs associated with refinancing is calculated using Mortgage Refinance Breakeven Point = Total Loan Costs/Monthly Savings. To calculate Mortgage Refinance Breakeven Point, you need Total Loan Costs (TLC) & Monthly Savings (MS). With our tool, you need to enter the respective value for Total Loan Costs & Monthly Savings and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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