This paper establishes the refined dynamic model of the five degree-of-freedom active magnetic bearing used in the earth-oriented satellite system with an unbalanced rotating payload based on the more refined air gap change model for stator motion. The disturbance effects of the thrust active magnetic bearing and the coupling effects of shaft motion are analyzed by the equivalent stiffness and damping model, especially when the satellite system is in the fine pointing phase. Numerical simulation results are provided to verify the accuracy of the proposed simplified stiffness and damping model, the disturbance term effects on active magnetic bearing, and the significance of the refined magnetic bearing dynamic model for improving the payload working ability in the fine pointing phase.