Mortgage Refinance Calculator
Are you looking to take our equity to finance a home renovation? Or want to see what a lower rate will do with your payment. This mortgage refinancing calculator will show you.
Should I Refinance My House?
Having money locked in your house value can be a great thing. You owe less debt, and there is a certain peace of mind that can come from this. Having said that, there are times when you could use the equity in your home for other purposes, rather than just letting it sit there and do nothing (but give you peace of mind). The question of should I refinance my house is a very personal one. On the one hand, it can help you get funds. However, it comes at a cost both in dollar terms and peace of mind.
So the answer really comes down to it. It depends on your situation and if you can handle the effects of refinancing your mortgage.
Mortgage Refinance Calculator
How to use Mortgage Refinance Calculator
There are a few different parts to our refinancing calculator.
Original Mortgage Details
Start by inputting your original mortgage details. This will include your original mortgage amount, the interest rate, and how long you decided to mortgage your home.
When you enter these amounts in, we will calculate the rough monthly number of your mortgage payment.
The second part of this mortgage refinancing calculator is the details of your refinancing. The first part is your refinancing amount. This is how much money you will be taking out of your home in total (aka the new mortgage amount). The new interest rate is the rate you will be charged on the new mortgage. The mortgage period is how many years it will take to pay back the mortgage.
Cash-out is where you can enter any money you plan on taking out. You can use this section or just put all of it under the “New Refinancing Amount” section.
Finally, you have closing costs; we have used 3% as a guesstimate of what the bank will be charging you to refinance your home. Typically the charge is between 2-5% of the loan. It may be more or less. You can move it around to a more accurate number.
After you are done with your amounts, the mortgage refinancing calculator will show you your new payment and the change of cash flow it will have on your budget.
A Couple of Things About The Mortgage Refinancing Calculator
This calculator shows you how much you can change your cash flow and shows you how much you can save in changing interest rates.
By playing around with things, you may find that you can pay off your house faster and lower your payment by switching interest rates. However, the opposite may be true depending on the situation.
You can refinance for various reasons, a lower interest rate, withdraw some equity in the form of cash, whatever the reason, see what the refinancing might cost you, and decide if it is worth having.
See if you can get a better rate on your mortgage. Below are some places you can look into.