Home mortgage made easy with mortgage refinance calculator

Considering a mortgage refinance? Our mortgage refinance calculator will help you estimate your home mortgage based on the loan terms and rates

If you're planning a mortgage refinance, you'd want to compare your current loan terms and rates with any new loan that you're thinking of applying for. Right? A handy tool that will let you do just that, and then some more, is our mortgage refinance calculator. It will estimate your home mortgage — calculating your monthly payments too.

Since refinancing is a real estate transaction that can cost you thousands of dollars, it's important to make sure that it provides you with a measurable financial benefit. And that, you stay in your home long enough to recoup the extra expense.

Planning Mortage

If you're planning a mortgage refinance, you'd want to compare your current loan terms and rates with any new loan that you're thinking of applying for. Right? A handy tool that will let you do just that, and then some more, is our mortgage refinance calculator. It will estimate your home mortgage — calculating your monthly payments too.

Planning Mortage

Since refinancing is a real estate transaction that can cost you thousands of dollars, it's important to make sure that it provides you with a measurable financial benefit. And that, you stay in your home long enough to recoup the extra expense.

Mortgage refinance calculator

The refinance mortgage rates calculator will help you save good money, and reduce your stress before you shop around for loan lenders. Using the tool, you can make an informed decision regarding your loan — choose a lower interest rate, lower your monthly payments, and even shorten your loan term. And another advantage is that you can even get rid of mortgage insurance premiums.

The mortgage refinance calculator will let you know exactly how much money you can save or lose. Basically, it will tell you if your refinancing is worth it or not.

Using the refinance mortgage rates calculator

All you have to do is enter the details of your existing loans as well as those of your prospective loan. The mortgage refinance calculator tool will estimate your refinance savings in minutes. You can easily evaluate whether you want to reduce your monthly mortgage payments, change the term of your loan, cancel your mortgage insurance, or update your loan program to save on interest.

What is mortgage refinancing?

When you want to replace your existing home loan with a new one because it's getting you better rates and terms, it's called mortgage refinancing. A majority of borrowers seek to refinance in order to get a more favorable interest rate, reduce the monthly payments, or shorten the mortgage term. The procedure to apply for refinancing is the same as applying for any other loan.

It entails a detailed examination of your credit score, income, work history, and financial situation. Moreover, a home appraisal is ordered by the lender to determine the current market value of your house as well as the amount of equity you have in it.

How does mortgage refinancing work?

During refinancing, your previous loan is paid off using the borrowed funds for your new loan. You can also seek a cash-out refinance, which allows you to borrow money against your home's equity and take out a percentage of the difference between what you owe and what it's worth now.

However, keep in mind that most loan lenders have a cap on cash-out refinancing. It's usually about 80 percent of your home's total value.
You can utilize the money you get against your home equity to pay off any high-interest debt or renovate your home to add to its value.

Planning Mortage

Mortgage refinancing cost

Refinancing may provide you with a long-term profit but it does come with its upfront fees. According to loan experts like Bankrate, these fees are usually the same as the ones you paid at the time of getting your original loan. Some of them include:


  • Mortgage application fee
  • Loan origination fees
  • Appraisal fee
  • Title search fees
  • Escrow costs for property taxes
  • Homeowners insurance

And of course the fees for document recording and credit check. The final closing costs will depend on the loan type, the new loan amount, the interest rate, your debt-to-income ratio, the current tax rate, and your credit score. Make sure to look for a reliable lender who offers you a competitive interest rate and the lowest fees.

Understanding break-even point on a mortgage refinance

When determining whether or not to refinance a mortgage, you need to evaluate exactly when you'll break even on your total costs. But, how do you calculate the break-even point? Well, just add up all your refinancing closing costs and get an estimate through a mortgage refinance calculator on how long it will take you to recoup those costs over the life of the loan.

Experts at Bankrate insist that you must opt for refinancing only if you plan to stay in your house for longer than the break-even point. Otherwise, you risk losing money. That is to say, you'll not be able to break even on your closing costs if you stay in your home for less than two to five years after refinancing it.

Common reasons for mortgage refinancing

Homeowners' decisions to refinance a mortgage vary depending on situations that make financial sense to them. Some of these reasons include:

Key takeaway

Before you start crunching numbers and finally decide on refinancing, don't forget to get a good idea of the loan through a reliable mortgage refinance calculator. And then, go ahead with your plans of refinancing if it makes good financial sense to you.

Shop around for the best refinance lenders. And, compare refinance rates and terms of mortgage providers such as national banks, credit unions, as well as online mortgage lenders.

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