Mortgage Refinance Calculator
This mortgage refinance calculator will figure how much interest you save over the life of the loan plus how long it takes to break-even on the refinancing costs. It will also calculate your new, lower payment when you refinance your current mortgage at a lower interest rate. Use this calculator to decide if refinancing makes good business sense... or not.
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How Much Interest Can You Save With A Mortgage Refinance?
Thinking about refinancing your mortgage?
Would you like to know how much money you will save?
While refinancing might look beneficial at first glance, there are some important facts to consider:
This Mortgage Refinance Calculator makes it easy to weigh the pros and cons of refinancing. It will calculate your net refinancing savings (interest savings minus closing costs), plus it will also provide other essential information to help you make the best financial decision.
Let’s start by looking at the benefits of refinancing first . . .
Benefits Of Refinancing Your Mortgage
People have different reasons for refinancing their mortgage. Most homeowners feel the only time it makes sense to refinance is if interest rates have dropped, but there are actually many other legitimate reasons to consider refinancing:
Although there are many benefits to refinancing, there are also some things to watch out for. . .
Downsides Of Refinancing Your Mortgage
Before making a decision to refinance, you should be aware that refinancing isn’t always in your best interest.
If your reason for refinancing is to consolidate debts, remember that you are just converting your unsecured loans to a secured loan. Your new mortgage payments may be higher thus increasing your risk of failing to make the monthly repayments. If you fail to pay, you will eventually end up losing your home.
Another potential risk is that property values could decrease and you could end up owing more on your home than its value.
A refinance may also lead to spending more money instead of saving money. For example, a typical refinancing may include any or all of the following fees:
Also, if you move out of your home before you break-even on your refinancing costs, the refinance would’ve been a net expense instead of a savings.
Another thing to watch out for is to count the costs of private mortgage insurance (PMI) should the refinance put you in a situation where your loan-to-value ratio is more than 80 percent of the appraised value.
In short, it doesn’t always necessarily make financial sense to refinance your mortgage just because interest rates have dropped. Use this mortgage refinance calculator to crunch the numbers and consider all the facts for your personal situation before making a decision.
Refinancing has many potential advantages but requires you to carefully consider the details of your situation first before pulling the trigger.
Remember there’s no such thing as a “no closing cost” mortgage. You’re going to pay substantial expenses to refinance, so make sure the benefits outweigh the costs.
This Mortgage Refinance Calculator can give you an excellent idea whether or not the numbers make sense without giving you a math headache. I hope it helps you.
Mortgage Refinance Calculator Terms & Definitions
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