David Matthew Buck, Broker | Mortgage Advisor at Buck Mortgage
LOAN PROGRAMS
Conventional loan PMI is based on down payment and credit score. Please consult your Mortgage Advisor for the PMI factor.
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Base Loan Amount
Total Loan Amount
Hover over chart segments to see detailed breakdown
Conventional loans are standard mortgage loans not backed by a government agency. They are typically best for borrowers with strong credit, stable income, and moderate to larger down payments.
Best For
Funding Fee
Conventional loans do not have an upfront government funding fee. The total loan amount equals the base loan amount unless mortgage insurance is required.
FHA loans are government-backed loans designed to help buyers with lower credit scores or smaller down payments qualify for home financing.
FHA Funding Fee (Upfront Mortgage Insurance Premium)
FHA loans include an upfront mortgage insurance premium of 1.75% of the base loan amount. This fee helps insure the lender in case of default and allows FHA to offer more flexible qualification guidelines.
Because this 1.75% fee is typically financed into the loan rather than paid out of pocket, the final loan amount shown at closing is higher than the base loan amount.
VA loans are government-backed loans available to eligible veterans, active-duty service members, and certain surviving spouses.
VA Funding Fee
VA loans include a one-time funding fee. The percentage depends on down payment amount and whether it is .
The funding fee helps keep the VA loan program self-sustaining and reduces cost to taxpayers.
Most borrowers choose to finance the funding fee into the loan. When this happens, the total loan amount becomes higher than the base loan amount.
USDA loans are government-backed loans designed to promote homeownership in eligible rural and suburban areas.
USDA Funding Fee
USDA loans include a 1% upfront guarantee fee. This fee allows the USDA program to guarantee the loan and support affordable financing for eligible buyers.
Like FHA and VA loans, this fee is typically financed into the loan, which makes the final loan amount higher than the base loan amount.
Conservative
Housing costs ≤ 28% of gross income
Moderate
Total debt ≤ 36% of gross income
Maximum
Maximum DTI for most loan programs
You break even in months.
After that, you save approximately per month.
Based on current inputs, refinancing would not provide monthly savings. Consider waiting for lower rates or if you have other goals like eliminating PMI.
Current rate is at least 0.5% higher than new rate
You plan to stay in your home for 3+ years
Your credit score has improved since purchase
You want to switch from ARM to fixed rate
You want to eliminate PMI
The break even point is the number of months it takes for the monthly savings from refinancing to recover the total closing costs paid for the refinance.
Break Even Calculation:
Monthly Savings = Current total monthly payment minus New total monthly payment
Closing Costs = Net Closing Costs (excludes escrows due to escrow credits or refunds)
Monthly Savings
Net Closing Costs
Break Even Point
We typically suggest refinancing when one or more of the following is true:
Break even point is less than 36 months
If you plan to keep the home beyond the break even timeframe, you will likely realize meaningful long-term savings.
You are eliminating PMI
Removing Private Mortgage Insurance can create immediate monthly savings and improve long-term cost efficiency, even if the break-even period is longer.
Converting from ARM to fixed rate
Moving from an adjustable rate to a fixed rate increases long-term payment stability and protects against future rate increases, which can justify refinancing beyond strict break-even math.
No Financial Break Even
Based on the current inputs, the new payment equals or exceeds your current payment. Refinancing may not provide monthly savings in this scenario.
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Licensing and Regulatory Information Barrett Financial Group LLC dba Buck Mortgage Solutions LLC. NMLS ID 181106. Buck Mortgage Solutions LLC is a trade name of Barrett Financial Group LLC. Licensed by the appropriate state and federal regulatory authorities and operating in accordance with applicable CBR regulations, the Secure and Fair Enforcement for Mortgage Licensing Act, and all other governing mortgage lending laws. For licensing information, please visit the Nationwide Multistate Licensing System and Registry at www.nmlsconsumeraccess.org.