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Annual Mortgage Review Calculator

A once-a-year mortgage review catches cost creep, missed refi windows, and escrow imbalances. This calculator tracks year-over-year metrics and flags whether you should refinance, recast, or remove PMI.

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Refi recommendation

Consider refi

Current equity

$157,000

Equity change this year

$37,000

Principal paid this year

$7,000

Value appreciation this year

$30,000

Current LTV

68.9%

Monthly refi savings if you move

$136

Months to refi break-even

77

Escrow payment change

$70

PMI removable at 78% LTV

Yes

How the math works

Year shows: $7K principal paid + $30K appreciation = $37K equity gain. LTV dropped from 74.7% to 68.9%. Refi from 6.5% to 5.875% saves $140/mo; closing costs $10,440; break-even 75 months — marginal, usually skip unless staying 7+ more years.

Do this review every December. Catches compounding tax/insurance creep in escrow, spots missed refi windows when rates drop, and tracks true equity buildup for decision-making.

How to Use

  1. Enter balance and rate at start and end of the year.
  2. Enter home value appreciation and escrow payment change.
  3. Enter current market rate for refinance comparison.
  4. See equity change, refi/recast signals, and PMI-removal check.

Frequently Asked Questions

When should I refinance?

When new rate is 0.75% or more below current rate AND you'll stay in the home long enough to recoup closing cost (usually 3-5 years). Break-even under 24 months = strong refi candidate. Over 48 months = usually skip.

When to remove PMI?

LTV at 80% automatically terminates PMI under federal HPA law (requires you to be current on mortgage, no 60+ day lates in past 12 months). At LTV 78%, PMI auto-cancels. Many homeowners miss this; request in writing.

Mortgage recast vs refinance?

Recast: pay a lump sum toward principal and lender re-amortizes remaining balance at same rate/term. Lower payment; same rate. Usually $200-$500 fee. Good when rates rose but you have cash. Refi changes rate and/or term.

What about an escrow analysis?

Lenders send an annual escrow statement. Review carefully — if tax or insurance rose meaningfully, expect a payment jump with shortage repayment. Paying shortage as lump sum avoids 12-month spread.

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