Closing costs include fees for applications, appraisals, title searches, attorneys, rate locks, credit reports, flood certification, recording, and various local taxes, among other fees. Closing costs for a typical refinancing could total $1,500 or more. For the purposes of this calculator, they do not include points.
This calculator assumes that the interest rate on your existing mortgage is fixed throughout the entire term, not adjustable.
If the IRA holder turns 70½ this year, he or she can defer the first distribution until April 1 of the next year. If the holder is older, he or she would normally be required to take an RMD before December 31 of this year. RMDs are considered taxable income for the year in which they are taken.
This calculator assumes that the interest rate on your new mortgage will be fixed throughout the entire term, not adjustable. Note that lenders usually quote different rates for different terms and that rates differ, depending on whether points are charged. The rate you specify should correspond with the quoted term and points.
Points, including discount points and origination points, are fees you pay the lender upon closing, quoted as a percentage of the mortgage principal. A $100,000 mortgage with 2 points, for instance, means a fee of $2,000 or 2% of the mortgage amount. Lenders usually offer mortgages with or without points; the more points charged, the lower the rate.
Most mortgages carry a term of 15 or 30 years. A 15-year term will permit you to pay off the principal more quickly, but will entail higher monthly payments. A 30-year term will afford lower monthly payments, but will mean slower principal paydown and significantly more interest paid over the life of the mortgage.