19 Mortgage Calculators Get this Widget
How to use the “Should I Refinance” calculator
When using a refinance calculator, you’ll be asked to enter the following information for your current mortgage loan:
- Amount: Original loan amount of your mortgage.
- Interest rate before = current interest rate.
- Interest rate after = rate of new mortgage.
- Length = 30 Year, 15 Year, 10 Year (repayment term): mortgage loans usually have repayment terms of 15 or 30 years.
- Length before = Original term of current mortgage ex: 30 year, not how many years you have left.
- Length after = Term of new mortgage example: 30 year mortgage would be just “30″.
- Months paid = how many months have you been paying on your current mortgage from the time you originally closed.
- Years before sell = if you are thinking of selling this house in a certain amount of time, place in years here.
Click “Next”:
- Points, Origination Fees = will usually equal zero on the programs we offer. You can elect to pay points for even lower rates but that can be discussed further at time of application. Enter 0 for Points & Origination Fees.
- Closing costs = will be the costs associated with closing your loan (title, interest, closing costs, insurance, etc.) Enter in an amount between 1% – 1.5% of your loan amount ($200,000 loan = $2,000 – $3,000 in closing costs) THIS IS NOT OUT OF POCKET, BUT ADDED INTO THE LOAN
Click “Next”:
- Tax Rate: Approximate federal tax rate. You can use the default if you don’t know the exact amount. This is used only to show a more accurate savings analysis. When you refinance to a lower payment – you sometimes lose a little tax write-off on the interest. *This is a good thing to pay less interest, but your tax deduction for interest is slightly less*.
- State Tax Rate: Use the default if you are unsure.
After clicking the “calculate” button:
The first section of the next screen displays a comparison of your current and proposed mortgage amounts and monthly payment savings. Remember this does not include property taxes or insurances. But this will give you an accurate comparison of monthly savings on the loan by itself.
** Most people compare the monthly savings so they know how much it affects their monthly cash flows**
The next section shows the reduction tax deduction benefit you’ll be receiving. Including this in the calculation makes the savings analysis even more conservative and accurate since most households are concerned about the monthly savings and cash flows only.
Finally, the calculator indicates the net estimated savings after payment of closing costs, tax deductions, etc) This is the “bottom line” figure that can help you decide whether or not to refinance. You can use the refinance and comparison calculators for reviewing multiple refinancing options. We can help you analyze these options to come up with the best conclusions for your particular situation.
CALL ME TO GET YOUR RATE QUOTE TODAY AND DISCUSS YOUR UNIQUE SITUATION.
WE CAN MATCH OR BEAT ANY OTHER LENDERS OFFERS… (505) 280-8959
