Finance category
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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.
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
- Enter balance and rate at start and end of the year.
- Enter home value appreciation and escrow payment change.
- Enter current market rate for refinance comparison.
- 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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