What It Does
Lets you line up 2 to 4 refinance scenarios and see which one costs less over your actual hold period. Each option takes an interest rate, points, closing fees, and prepayment penalty structure (step-down from 5-year to none). The calculator totals points + fees + cumulative interest + any prepayment penalty at your chosen exit year, highlights the Best Option, and charts total cost over 10 years so you can see crossover points where a higher-rate/lower-fee loan beats a bought-down rate.
How to Use It
- Set your Loan Amount and Loan Term.
- Fill in at least two loan options: rate, points, closing fees, and prepay penalty window.
- Drag the Hold Period slider (0 to 10 years) to match how long you plan to hold the property.
- Read the red banner and the “Best Option” badge: that is the cheapest total cost of money at your hold period.
- Review the cost breakdown table (points, fees, interest paid, prepayment penalty, total) and the crossover callout.
- Scroll down to the line chart showing total cost trajectories.
When You Need This
- Choosing between a dscr loan with points and a higher-rate no-points option.
- Deciding whether buying down the rate makes sense for your planned hold.
- Evaluating prepayment penalty risk before locking a 3 or 5 year penalty term.
- Presenting loan comparisons to a partner or lender in a clear side-by-side format.