Refi Savings Calculator
Can refinancing your home loan help you to save money? In some cases it seems like it will, but it may end up costing you more. Before you consider the mortgage lender's offer for a mortgage refinance, know what it can offer you and what it may cost you.
Most of the time, mortgage refinancing is not as simple as it may seem. You will likely need to pay new closing costs. You may have to pay additional fees. In addition, you may refinance to a longer term on the loan, which may extend your debt longer, making it more expensive.
However, do not discount this process just yet. There are some fantastic benefits to refinancing, including lower monthly payments, paying off your loan sooner or just getting a lower interest rate. This all depends on the loan you select. |
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To find out how this type of loan can help you, or hurt you, use this Refi Savings Calculator. It takes only basic information to compare your options. Many people are impressed with how much they can save by refinancing.
- List the original interest rate of the mortgage loan you have right now.
- List the original amount of your loan, whatever you borrowed initially to buy your loan.
- List the original loan term, the length of time you elected to pay your loan over.
- List the number of months left to pay down your loan. If you do not know this information, you can find it on your statement or by looking at your loan documents.
- List the new interest rate you may be eligible for, which may be lower than what you were paying monthly.
- List the new loan amount. This amount is likely different than the original loan amount,, based on how much you still owe on the home right now.
- Finally, list the new loan term in the final term, or the length of the new loan once you refinance.
When you click on calculate, you will get a clear explanation of what this new loan will cost you, compared to your old loan. It will break down the monthly payment differences, the total monthly savings and the total cost of the loan. It then lists the total savings you will have by refinancing your current mortgage loan.
In many cases, a lower interest rate or better terms will help you to save a substantial amount of money on your mortgage loan. Be careful to consider a few different options if your mortgage lender offered them. Get a clear understanding of the terms of your new loan, too. This Refi Savings Calculator gives you clear information you can use to make this all-important decision. |
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