Home Mortgage Refinance Calculator - Curious about what a 1% interest rate drop could mean to your monthly mortgage payment, or what your new payment would be if you refinanced from a 30-year to a 15-year loan?
A home mortgage calculator can provide you with the answers to these questions - and more! An excellent tool to help you decide whether to proceed with a refinance, or to help you choose between different types of loans, home mortgage refinance calculators are a cinch to use.
To use a home refinance calculator, you'll need the following information:
The amount of your original home mortgage (how much you borrowed to purchase your home)
Your current interest rate (APR)
The term (length) of your loan
The length of your remaining loan (from your most recent mortgage statement)
The balance of your remaining principal (also from your most recent mortgage statement)
After inputting the above information, you can enter the data you've received from lenders regarding your potential home refinance loan:
New interest rate
New term length
Closing cost fees
Points paid, if applicable
Once the results are calculated, you'll have a nice overview of how your current home mortgage loan stacks up against potential home refinance loans. From these results, you'll learn the following:
Your new monthly payment
How long it will take for you to recoup your closing cost expenses (your "break even" point)
The total amount of interest you'll pay throughout the life of your loan
If your new monthly payment is higher than anticipated, see what results you'll get from lengthening the loan term, or experiment with how much you could save by paying closing costs up-front instead of rolling them into your new loan. When refinancing, don't squander the difference. If possible, continue to make your current payment and your home will be yours, free-and-clear, well before the end of your loan term.
