How much house can you afford? Use our affordability calculator to estimate what you can comfortably spend on your new home.
Webster’s dictionary defines amortization as, “the systematic repayment of a debt”. The emphasis is on the word “systematic”. Amortizing a loan means paying it down, bit by bit.
Our mortgage calculator shows how much you can afford to debt and what your home loan repayments will be.
Refinance Calculator makes it easy to determine your potential savings from refinancing your mortgage. It lets you takes into account such things as taxes and private mortgage insurance (PMI), so you can get a precise estimate of your true savings. It also has the quality to calculate your break-even point for various different costs, so you get to know about how quickly you’ll recover the up-front costs of refinancing.
Use the top portion to enter the information from your current mortgage, then the “new mortgage” section immediately below to enter the figures for refinancing. PMI, if needed, is calculated automatically. You have the sliding scales to see how changes occur in interest rate, discount points,closing costs, loan term, or other factors would affect your savings.
Refinance Calculator is designed to deal with the first three situations. It has been designed to calculate your monthly payments and savings from refinancing, and will find out how much more you might end up paying over the long term if you choose the third option, lengthening your loan.
When you refinance, you’re simply replacing your old mortgage with a new one. You go through the same steps and provide the same information you did when you got your original mortgage, and go through the same approval process. When the new mortgage is approved, those funds are used to pay off the old loan and you go simply go forward with the new loan instead.
Using the Mortgage Refinance Calculator
Refinance Calculator has two main parts. In the first part, “Original mortgage,” enter the information for your current mortgage. The “appraised value” should be the value of the home at the time you purchase it or otherwise took out the loan, not the current value. The calculator uses that to determine if you’re presently paying for mortgage insurance.
the size of your mortgage interest can be deducted if you refinance to a lower rate After entering your information, hit the “calculate” button and the which affects your savings from refinancing. The Mortgage Refinance Calculator can take that into account, which is why it asks for your income tax rate.
In the second part, “New Mortgage,” you can either enter your current loan balance or let the calculator figure it out for you. If you choose the latter, the Refinance Calculator determines what your current balance should be based on regular amortization, without any additional or late payments.
The “loan origination rate” is the percentage of the loan amount your lender is charging to originate the loan. Other closing costs are entered in the “other costs” box.
After you enter your information, press the “calculate” button and the Refinancing Calculator will figure out total savings over the life of the loan and your new monthly payment. The “View report” button will take you to a new page that will show a breakdown of your savings and the new mortgage in more detail.
About Mortgage Refinancing
Most homebuyers who take out a 30-year mortgage eventually end up refinancing the loan at some point along the line. That is, provided they don’t sell the place and move somewhere else first.
That’s been particularly true in recent years, as falling mortgage rates have given borrowers the opportunity to save a few dollars by refinancing to a lower rate. But that’s not the only reason to refinance. Here’s a rundown of some of the more common reasons borrowers refinance a mortgage:
- To switch to a lower mortgage rate.
- To pay off the loan faster by refinancing to a shorter term (usually at a lower rate as well)
- To lower their monthly payments by extending their loan term
- To change from an ARM(adjustable-rate mortgage)) to a fixed-rate loan
- To borrow against their home equity through a cash-out refinance
- To remove another person’s name from the loan, such as in the case of a divorce
Deciding whether to Refinance
The big question about refinancing is whether it makes financial sense or not. How much will you knock off your monthly payments? How much time will it take for those savings to exceed your closing costs from refinancing? Can you afford to shorten your loan term? If you stretch out your mortgage to a longer term, will that cost you more in the long run? Above Given are the questions you should know how to answer before refinancing. Refinance Calculator can help you get those answers.
Why should I refinance my home loan?
There can be several reasons that refinancing might be a better thought for you. You can get bored of making payments two times out of which first one for your first mortgage and another for your second mortgage. Perhaps it might be the time to reduce your current interest rate to an adjustable rate or a lower fixed rate. You may also like to switch to a shorter term mortgage in order to pay off your mortgage as soon as possible. You may have an adjustable-rate that you need to convert into a fixed-rate mortgage. And you would like to cash out some of your equity, or lower your overall mortgage payment.