Refinance Decision Analysis
The same comparison, payment by payment. Both loans are paid at the identical monthly amount; each row shows the interest, the principal retired, the remaining balance, and the equity built. The break-even payment is highlighted in both schedules.
Break-even point
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| Mo | Payment | Interest | Principal | Balance | Equity |
|---|
| Mo | Payment | Interest | Principal | Balance | Equity |
|---|
Equity = principal paid down so far (original balance − remaining balance). Each row's payment is the amount applied to that loan; the final payment is smaller where it clears the balance.