Refinance Calculator : Should You Refinance Your Mortgage?
A mortgage refinance calculator should tell you whether you will save money if you leave your mortgage alone, make extra payments, or refinance.
A homeowner might pay less interest with a lower rate, but sometimes it costs more over the life of the loan to “start over” with a new 30-year fixed mortgage.
This home refinance calculator will help you decide whether to do nothing, make additional payments on your loan, or refinance into a lower rate or shorter loan term.
Is A Refinance Worth It?
Refinancing is all about priorities. For some homeowners, the lowest possible payment is of utmost importance. To others, lower lifetime cost is higher on their list.
That’s why this mortgage refinance calculator shows monthly savings as well as lifetime savings. While you might save money each month by refinancing, it doesn’t always mean you’ll save money in the long run.
Of course, there are other reasons to refinance, too.
Perhaps you want to do some home improvements or need quick funds to send a child to college. Maybe you need to consolidate credit cards or auto loans. In those cases, you might choose a cash-out refinance. This loan type pays off your existing loan, plus gives you access to your home’s equity for additional cash that can be used for any purpose.
Some homeowners choose to refinance into a shorter loan term to save on interest, and other actually choose to lengthen their loan term to make their monthly payments lower.
Types Of Mortgage Refinances
Your refinance type depends on a few factors, like your credit score, current loan type, and your home’s equity.
FHA Streamline Refinance: This loan does not require an appraisal, so the home’s current value doesn’t matter. Current FHA loan holders are eligible, and many applicants qualify with lower credit scores.
VA Streamline Refinance: If you have a VA mortgage currently, you can reduce your rate and payment quickly without income or asset documentation. Even the appraisal requirement is waived, so underwater homes are eligible.
USDA Streamline Refinance: Current USDA loan holders can refinance their loan with no appraisal or income check.
HARP: The Home Affordable Refinance Program is available to underwater homeowners with a loan owned by Fannie Mae or Freddie Mac.
Conventional Refinance: This loan lets you refinance out of any other loan type. For instance, it can eliminate FHA or conventional mortgage insurance when you obtain 20% or more equity in your home.
Check Refinance Rates
Mortgage refinance rates are low, and many homeowners discover that they can save money each month and over the life of their loan.
Check current rates and see how much you can save.Verify your new rate (May 20th, 2018)
Methodology And Definitions
Option 1: We estimate the month and year that you will pay off your loan at current terms by analyzing your current loan balance, payment (without taxes and insurance) and your rate. This will be what you pay if you neither refinance nor make extra payments.
Option 2: Sometimes it’s cheaper to keep your current loan and simply send an extra sum each month. This option calculates how much your specified monthly extra payment will reduce the life of your loan and total interest cost.
Option 3: Often, refinancing is the best option. Whether you are reducing your rate or shortening your loan term, this option tells you if it’s worth it to refinance your loan.
Loan Balance: The amount you currently owe on your mortgage
Principal & Interest Payment: Your payment, less any taxes, insurance, mortgage insurance, or other costs.
Interest Rate: Your current mortgage rate
Payoff Date: When you will have paid your mortgage in full
Payment: Principal and interest payment plus any specified extra payment
Interest Cost: The amount you’ll pay in interest over the remaining portion of your loan.
Additional payment: The amount by which you will pay extra each month for the rest of your existing loan term.
Interest Savings: How much you will save in interest over the life of your loan if you pay extra each month or refinance. A negative number displayed in red means refinancing costs you more in the long run.