Mortgage Refinance Calculator: How Much Could You Save? | LendEDU

Mortgage Refinance Calculator

Current Mortgage Amount

Current Interest Rate (APR)

Remaining Loan Term (Years)

New Home Loan Information

New Interest Rate (APR)

New Loan Term

Calculator Results

Current New Savings
Interest Rate
Monthly Payment

per month

Term Length years years years
Total Interest
Total Cost

By refinancing your home lend, you could lower your monthly payments by. By refinancing your home loan, your monthly payments will be higher. You could save overall on your mortgage You will pay more on your base loanword and pay it off years ahead of agenda. and pay it off years behind agenda .

Or, check out our cash-out refinance calculator .
Refinancing your mortgage involves taking out a newfangled loanword to repay your existing mortgage debt .
You may decide to refinance your mortgage for versatile reasons, including to lower your sake rate, reduce your monthly payments, or take cash out of your home to use for other purposes such as debt repayment .
When you refinance your mortgage, you want to make sure this decision makes fiscal sense. Our mortgage refinance calculator can help you understand the impingement refinance will have on your full refund costs equally well as your monthly payment sum .
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Should I Refinance My Mortgage?

There are a number of reasons why taking out a new mortgage might be a full estimate. One of the most common reasons is to save money on your current loan .
You could reduce your monthly mortgage payment by refinancing to a lend with a lower sake rate, longer refund period, or both. You could besides save on your full concern costs by refinancing to a lower-rate loanword .
however, if you extend your mortgage term, you may end up paying more in interest over the biography of your loanword depending on the rate and how many months you add to your lend. You ’ ll need to use the mortgage refi calculator to see how your monthly payments and total concern costs would be affected .
For case, say you got your $ 200,000 mortgage at a time when concern rates were gamey and your credit score was first gear, so you ’ re paying 5.3 %. Let ’ s assume you have 320 months left on your lend with a remaining loan balance of $ 192,000.

By refinancing to a 360-month lend at 4.25 % and $ 3,000 in close costs ( including initiation fees ), you could save $ 229 per calendar month and $ 19,587 over the life of the lend. You ’ ll break even from your refinance fees in 14 months, sol deoxyadenosine monophosphate long as you plan to own the home that long, refinancing would absolutely make sense .

Cash-out refinance

You could besides take out a cash-out refinance lend in which you increase the amount you borrow. This allows you to tap into the fairness in your home to pay down debt or finance home improvements .
Be aware, though, that a cash-out refinance could make your monthly loan payments higher and increase the total pastime you pay. If you can ’ deoxythymidine monophosphate get a mortgage loan at a lower rate, you ’ ll increase your costs even further — so depending on what you plan to do with the funds, it might not be the best theme .
Say, for case, you borrowed $ 200,000 at 4.25 % with a remaining libra of $ 192,000 and 320 months left on your loan. You want to take out a $ 210,000 loanword paid away over 360 months but can only qualify for a 5.25 % mortgage rate, and you have to pay $ 3,000 in close fees .
In this case, your monthly payments would increase by $ 114 and you ’ vitamin d pay $ 97,355 more in mortgage interest over the life of your loan .
This doesn ’ t make fiscal sense unless you are somehow going to save $ 97,355 by refinancing other debt with a cash-out refi .
Read more: Cash-Out Refinance Calculator : How a lot Could You Get ?

Reasons to Refinance a Mortgage

Some of the most common reasons why people refinance a mortgage include :

  • Reducing your total monthly payment: Taking a loan at a lower interest rate or extending the repayment term could result in a lower mortgage payment and create wiggle room in your budget.
  • Reducing total interest costs: Reducing your interest rate with a refinance loan should reduce both your monthly payment and total interest costs. If you make your new repayment term longer than it is with your existing home, your monthly payment may be much lower but your total interest costs could be higher.
  • Switching loan servicers: If you’re dissatisfied with your current mortgage lender, you may want to refinance so you’ll have a new loan company to deal with.
  • Taking cash out of your home: A cash-out refi lets you borrow more than you currently owe so you can tap into your home equity and use the money for debt consolidation, home improvements, or other big expenses.

Reasons Not to Refinance a Home

In some cases, refinancing might not make feel. For exercise, you may not want to refinance your dwelling under the adopt circumstances :

  • You plan to move soon: If you plan to relocate soon and sell your home, refinancing your mortgage likely wouldn’t make sense because you won’t save enough from lower monthly payments to justify the fees you’ll pay for refinancing.
  • You can’t qualify for a lower interest rate: It makes little sense to refinance if your refinance rate is higher than what you currently pay. This could happen if your credit score isn’t as good as it was when you took out your original loan or if interest rates have gone up since then.

Mortgage Refinance Options

If you decide to refinance your mortgage, you have a number of fiscal institutions you can choose from to get your new lend. This includes traditional banks, on-line lenders, and citation unions .
here are a few options to consider if you ’ rhenium think of refinancing. You can besides check out the best mortgage refinance companies rated by LendEDU .

SoFi Mortgage

SoFi MortgageLearn More 10 % depressed, 100 % family

  • No hidden fees or prepayment penalties
  • Put as little as 10% down on loans up to $3 million
  • Exclusive member discounts

SoFi offers flexibility for homeowners looking to refinance a mortgage, with options for a standard refinance loanword, cash-out refi, or cash-out refi focused on repaying student loans .
And if you ’ re an existing SoFi penis, you can save $ 500 on your mortgage loanword or refi serve fees. *
Full Review: SoFi Mortgage Review

Basic Info

  • Credit score: SoFi doesn’t disclose credit score minimums for refinance loans.
  • Down payment requirement:  down
  • Maximum loan amount: 
  • Loan options: 30-year fixed; 15-year fixed; 7/1 adjustable rate mortgage (ARM); 5/1 ARM interest-only
  • Interest rates: Varies by credit score and loan term; SoFi members get a 0.125% rate discount on any additional SoFi loans

Rocket Mortgage

Rocket MortgageLearn More A childlike way to buy a home or refinance .

  • Apply Online – Streamlined application available 24 hours a day, 7 days a week
  • Use RateShield Approval and lock in your rate for up to 90 days
  • Home Loan Experts available seven days a week to answer your questions

Rocket Mortgage offers both standard home loans and cash-out refi loans. here is the information for their Rocket Mortgage Refinance .

Basic Info

  • Credit score: Minimum
  • Down payment requirement: 
  • Maximum loan amount: 
  • Loan options: 30-year fixed; 15-year fixed; 5/1 ARM; 30-year fixed FHA; 30-year fixed VA
  • Interest rates: Rates change daily based on the market; go here to see today’s rates

Full Review: Rocket Mortgage Review

Alliant Credit Union

Alliant Credit UnionLearn More The family you want. The lender you trust .

  • No application fee or escrow waiver fee
  • 0% down for well qualified First Time Home Buyers
  • Loan amounts up to $2M

Alliant Credit Union is one of the largest accredit unions in the U.S. and offers respective mortgage solutions as partially of its lineup of personal lend products. hera is information about the Alliant Credit Union Mortgage Refinance.

Basic Info

  • Credit score: Minimum
  • Down payment requirement: 0% for well-qualified first-time homebuyers; as low as for non-first-time homebuyers
  • Maximum loan amount: 
  • Loan options: 30-year fixed; 15-year fixed; 20-year fixed; 3/1 ARM; 5/1 ARM; 7/1 AMR; 10/1 ARM
  • Fixed interest rates:  APR to APR depending on the loan type

Bottom Line

If you ’ re open about whether refinancing your mortgage makes sense, use our mortgage calculator to get an theme of how a lot you could save .
If you plan to live in your firm long adequate to break even on the fees you ’ ll incur, it might make sense for you to refinance. just be certain to shop around to find the perfective lender .
*Read SoFi ’ s Disclaimer here .

source :
Category : Finance

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