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.
When Is It Time To Refinance A Mortgage
Refinancing a home loan is the process of getting a new loan to pay off the old loan. Refinancing your mortgage is a tough decision. It requires a lot of research and careful planning to be able to make an informed decision. If you make a mistake with your decision, you will lose a lot of money. To avoid this costly mistake, use the mortgage refinance calculator above to help you analyze your financial situation and assess if refinancing is best for you.
Why Should You Refinance?
People have different reasons why they opt for mortgage refinancing. Most homeowners often feel the right time to refinance is when interest rates are low. But let’s look at the other reasons for refinancing.
Before making a decision to refinance, you should understand that there would be consequences involved. If your reason for refinancing is to consolidate debts, you must remember that you are just converting your unsecured loan to a secured loan. Your new mortgage payments may be higher, thus, increasing your risk of failing to pay the monthly repayments. If you fail to pay your monthly repayments, you will 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.
Refinancing is not for everyone, since everyone’s situation is different. If you think carefully, there are a number of factors to consider before rushing to your lender to apply for refinancing. Lowering your mortgage rates is good, and it can potentially help you save money, but it isn’t that simple. You need to evaluate your long-term plan and assess if you would want to keep your house long enough to benefit, and if changing the loan term is worth it. A refinance may also even lead you to spend more money instead of saving money. The cost for refinancing usually include fees associated with: survey, appraisal, title search, title insurance, realty transfer taxes, legal services, messenger or delivery services, document copying, etc. A simple calculation using the mortgage refinance calculator will tell you whether refinance is just right for you.
In general, refinancing is advantageous if done correctly in the right time. So before deciding to refinance, just make sure that the benefits of refinancing is higher than the risk involved.
Mortgage Refinancing Terms and Definitions
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