Mike’s strategy shows you how to account for the money coming back to you, not just the cost of refinancing.
The calculator below shows how you may be able to take up to two mortgage payments you set aside, add your escrow refund from your old loan, and apply those funds with your first payment on the new mortgage. That extra money can help pay your new loan balance back down and offset the closing costs that were rolled into the refinance.
In many cases, this can significantly reduce the true cost of refinancing, and sometimes offset it completely. On loan amounts around $375,000 or more, those dollars can add up quickly. The calculator below helps you easily see these dollars side by side so you can understand the math, see how your two set-aside payments plus your escrow refund can offset the costs rolled into your new loan, and see how much the refinance is actually costing you after Mike’s strategy is applied.
You need your closing cost estimate and your latest mortgage statement. Type the numbers into the yellow fields. The calculator does the math and updates as you go.
Step 1
Tell Us About Your Refinance
Add your refinance costs, current payment, escrow refund, and closing date. We’ll do the math for you.
Step 2
See What The Refinance Really Costs
See how much money may come back to you, what the refinance costs, and whether those dollars cover the expense.
Step 3
See How The Cost Could Be Offset
View the numbers side by side and see how using your money wisely could offset the cost of refinancing.
Step 4
Put Your Money Back Into Your Home
See three simple ways to use that money after closing and pay down your new loan balance.
Fill In The Yellow Fields. Everything Else Is Calculated.
Add your refinance costs, current payment, escrow refund, and closing date. We’ll do the math for you.
Lender, title, and other closing charges from your estimate.
Money the new loan collects up front for taxes, insurance, and interest.
The full payment you make today on your current loan.
Use the escrow balance on your latest mortgage statement. Your real refund may be different.
We use this to find your first payment date on the new loan.
Projected First Payment Date
Calculated from your closing date. Nothing to type here.
See how much money may come back to you, what the refinance costs, and whether those dollars cover the expense.
Mortgage Payments Set Aside
$7,150
Estimated Escrow Refund
$2,265
Total Money Available
$9,415
Total Refinance Costs
$7,492
Amount Left Over After Costs
$1,923
Your set-aside payments and escrow refund cover the full refinance cost, with about $1,923 left over.
View the numbers side by side and see how using your money wisely could offset the cost of refinancing.
See three simple ways to use that money after closing and pay down your new loan balance.
With Mike’s strategy, set aside the monthly mortgage payments you are able to skip around your closing. Keep that money in your bank. Do not spend it.
After your old loan is paid off, your old servicer sends back the money left in your escrow account. Add that refund to the payments you set aside.
When your first payment on the new loan is due, make that payment. At the same time, send the payments you set aside plus your escrow refund as an extra principal payment. This pays your new loan balance back down and can offset most or all of the costs that were rolled in. Tell your new servicer to apply the extra money to principal, not to a future regular payment.
Send your scenario to Mike and his team, or book a call directly below.
Prefer to talk it through? Pick a time that works for you.
Booking unlocks once you send your scenario, so Mike has your numbers before the call.
Your information is used only to respond to your mortgage inquiry and is not sold. This is not a loan application and does not constitute any type of formal loan approval.
Important: this calculator is for learning and planning only. It is not a Loan Estimate, a promise to lend, a payment instruction, tax advice, or legal advice. Closing costs, prepaid items, escrow refunds, payoff amounts, and payment due dates can change. Do not skip, delay, or hold any mortgage payment unless your loan officer or loan servicer confirms the exact timing for your refinance. This strategy does not remove mortgage interest. Send any extra payment after closing the way your new loan servicer tells you to.
This is a simple estimate. Your real results depend on your loan program, payoff date, servicer rules, and your own situation. Talk with a licensed lender, a tax professional, and a financial advisor before you decide. Equal Housing Opportunity.