Are you looking to take our equity to finance a home reno? Or wanting to see what a lower rate will do your payment. This 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 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 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’s a few different parts to our refinancing calculator.
Original Mortgage Details
Start out by inputing 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 be able to 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). New interest rate is the rate you will be charged on the new mortgage. Mortgage period is how many years you will take to pay back the mortgage.
Cash out is where you can enter in 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, the have used 3% as a guess-timate 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 what your new payment will be, and the change of cash flow it will have on your budget.
A Couple of Things About The Mortgage Refinancing Calculator
This calculator not only shows you how much you can change your cash flow but it also shows you how much you can save in changing interest rates.
By playing around with things you may find that by switching interest rates you can pay off your house faster, and lower your payment. 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.