Second Mortgage Calculator – Refinance & Consolidation To Save


Second Mortgage Calculator - Refinance & Consolidation

This second mortgage calculator figures the savings from refinancing and consolidating your old 1st and 2nd mortgages into a single loan.

This calculator shows you the monthly payments, how much you will save in interest from the refinance/consolidation, and it figures how long it takes to break even on the closing costs.

Please note: Don't include the escrow portions of your monthly payment (taxes, insurance) - just include principal and interest.

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First Mortgage
Balance due on first mortgage ($):
(call mortgage lender for payoff amount)
Current monthly mortgage payment ($):
(principal and interest portion only)
First mortgage interest rate (%):
Second Mortgage (Optional)
Second mortgage balance due ($):
(call mortgage lender for payoff amount)
Second mortgage monthly payment ($):
(principal and interest portion only)
Second mortgage interest rate (%):
Refinance - Consolidation
Interest rate you will be refinancing at (%):
Refinanced loan term (# of years):
Expected closing costs :
(Input points as "2" or dollar amount is .02 times principal)
Will you finance these closing costs?
This is the new monthly payment if you refinance:
Monthly payment (decrease)/increase:
Number of months for interest savings to repay closing costs:
Total interest costs with current first and second mortgages:
Total interest costs after refinance - consolidation:
Interest savings from refinance - consolidation:
Net Refinancing Savings (interest savings less closing costs):

How Much Will You Save By Refinancing And Consolidating Your Mortgages?

Thinking about refinancing and consolidating your mortgage debt? Not sure if you’ll save money?

Don’t take a lender’s word for it – after all, they’re hoping to make money on the transaction. Do your homework and make sure a refinance and consolidation is right for you.

Find out by utilizing our Second Mortgage Calculator, a powerful tool that reveals your new monthly payments, interest savings, and more.

But first, learn a little about refinancing and consolidating mortgages . . . .

Refinancing And Consolidating Mortgages

Are your monthly mortgage payments too high? Would you rather pay one mortgage instead of two? You might want to refinance and consolidate your mortgages.

If you have a second mortgage on the same home as your first mortgage, that’s called a home equity loan or a home equity line of credit. Home equity loans add an additional layer of complication to the process of a refinance. Remember, the second mortgage lender must agree to give up their position to the refi lender.

If they won’t agree to giving up their position to a new lender, you must either:

  • consolidate both loans with the second mortgage lender,
  • pay off the second mortgage by selling other assets, or
  • forget about refinancing altogether.

You can also lower your payments by refinancing your first mortgage only – but it isn’t easy. You’ll need to ask the second mortgage lender to agree to the new terms. Or, you could try to refinance each of the loans separately.

Keep in mind that most lenders require you to wait at least a year after receiving your second mortgage before refinancing it.

If you have the green light to refinance, make sure it’s really what you want to do. Here are some factors to consider before refinancing . . . .

Should You Refinance?

Start by using the Second Mortgage Calculator to find your potential savings. If both of your mortgages have low interest rates, the costs of refinancing might be greater than your savings.

Here are some additional considerations and tips:

  • Check how much time you have left on your first loan – If you’re less than ten years away from paying off the first loan, refinancing could actually cost you more because most of your payments are applied toward the principal balance rather than interest.
  • Check your credit rating to see if you qualify for a refinance – The better your credit rating, the lower your interest rate.
  • Find lenders that offer low interest rates – Take the time to find the best deals and plug those figures into our mortgage consolidation calculator. It’s worth your time to shop around.
  • Check if the interest savings is worth the cost and the hassle of refinancing – The Second Mortgage Calculator reveals your net refinancing savings.
  • Understand the risks involved with refinancing – Read the disclosures to find possible penalties your lender will impose if you close your current loan early.
  • Seek advice from your financial advisor – Remember, your lender may be biased and encourage you to refinance when you shouldn’t. Find an objective financial advisor whose paycheck isn’t dependent on their advice.

Final Thoughts

Some people blindly refinance their mortgage only to find themselves in never-ending debt. Others refinance armed with the knowledge that they’ll save money. If you’re going to refinance and consolidate, join the latter group, not the former.

Take a few minutes to consider refinancing and consolidating your mortgages. You just might save loads of money that you can put toward investments and building wealth.

Second Mortgage Calculator Terms & Definitions

  • Mortgage – The charging of real property by a debtor to a creditor as security for a debt (esp. one incurred by the purchase of the property).
  • Mortgage Payment – A regularly scheduled payment which includes principal and interest paid by the borrower to the lender of the home loan.
  • Mortgage Balance – The full amount owed at any period of time during the duration of the mortgage.
  • Loan Term – The duration of the loan, in this case, the mortgage.
  • Interest Rate – The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
  • Interest Amount – The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.
  • Principal Amount – The original sum lent or borrowed.
  • Refinance – Financing something again, preferably with a new loan at a lower rate of interest.
  • Amortization – The paying off of debt in regular installments over a period of time.
  • Closing Costs – The expenses, over and above the price of the property, that buyers and sellers normally incur to complete a real estate transaction.
  • Credit Rating – An assessment of the credit worthiness of a borrower in general terms or with respect to a particular debt or financial obligation.
  • Consolidate – The combining of assets, liabilities and other financial items of two or more entities into one (in this case, mortgages).
  • Lender – Someone who makes funds available to another with the expectation that the funds will be repaid.

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