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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How Much Will You Save By Refinancing And Consolidating Your Mortgages?
Thinking about refinancing and consolidating your debt into a second mortgage?
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 loan is right for you.
This second mortgage calculator reveals your new monthly payments, interest savings, and more so that you can decide if refinancing and consolidating makes good business sense.
Below is more information about second mortgages and debt consolidation to help you make a smart decision . . . .
Refinancing And Consolidating Mortgages
Are your monthly mortgage payments too high?
Would you rather have one mortgage payment instead of two?
If yes, then you may be a candidate for refinancing and consolidating your mortgages.
When 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 refinancing. Remember, the second mortgage lender must agree to give up their position to the refinance lender.
If they won’t agree to giving up their position to a new lender, you must either:
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.
Please keep in mind that most lenders require you to wait at least a year after receiving your second mortgage before refinancing it.
If your existing lenders agree to refinance then the next step is to verify that it makes financial sense using this second mortgage calculator. Below are the various factors to consider that may affect your decision . . . .
Should You Refinance?
The greatest potential benefit of refinancing is interest savings. Therefore, if both of your current mortgages already have low interest rates then the costs of refinancing might be greater than your savings.
Here are some additional considerations and tips that affect the second mortgage calculation:
Some people blindly refinance their mortgage only to find themselves in never-ending debt. The problem is refinancing will usually extend the term of your loan which also negatively impacts amortization. When you refinance repeatedly you end up extending your loan term over and over again so that you never actually get out of debt.
Alternatively, smart consumers refinance armed with the knowledge that they’ll save money. They calculate their interest savings and balance this against their refinance costs and extended amortizations to make a smart business decision.
It only takes a few minutes to run the numbers for your personal situation using this second mortgage calculator so you can accurately determine if refinancing and consolidating will save you money. The more you save, the more you can put toward investments and building wealth, and that can make a huge difference in your long-term financial situation.
Second Mortgage Calculator Terms & Definitions
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