Refinance Calculator
If you are thinking of refinancing your loan for a lower interest
rate our easy to use refinance calculator can help you come to a
decision. A refinance will mean paying closing costs and, in some
cases, points so is only a good decision if the monthly savings
exceeds these costs.
- Enter ballpark values by clicking on and dragging the diamond-shaped
sliders left or right. Enter exact numbers by clicking on the
number in the box on the right and type your number (no commas).
- The results of your calculations show in the box at the bottom
of the calculator.
Current Loan Information Loan
Amount
Enter the amount of your current loan.
Loan Rate
You should enter the interest rate on your current loan here.
Loan Term
This is where you enter the number of years that you agreed to pay
back your loan in full.
Months Paid
Simply enter the number of months that you have made payments on
your loan.
Current Balance
You should enter the estimated balance of the principal and interest
on your current loan. Do not include tax or insurance fees.
Monthly payment
Enter the only the amount you pay each month for the interest and
principal on your current loan.
Outstanding Interest
Estimate the amount of interest you will pay on your current loan
if you choose not to refinance and enter it here.
New Loan Information Loan
Rate
You should enter the interest rate of your new loan.
Loan Term
Enter the maximum number of years that you will agree to pay back
the new loan in full.
Points
You should enter the number of points you can afford to purchase.
Each point is equal to 1 percent of the loan amount (e.g., two points
on a $100,000 mortgage would cost $2,000)
Other Costs
These are expenses incurred by buyers and sellers in transferring
ownership of a property which may include an origination fee, taxes,
the costs of obtaining title insurance, transfer fees, etc. They
are also called closing cost and can amount to several thousand
dollars so you might want to consult a loan officer for an estimate.
Savings Rate
Most borrowers choose to roll closing costs and points into the
loan balance; however, if you choose to pay those costs out-of-pocket,
you should enter your savings interest rate. You can then determine
how much interest you will lose by taking that money out of your
savings.
Monthly payment
This box will compare the monthly payment amounts between your current
loan and your proposed, new loan.
Outstanding Interest
This allows you to easily compare the total interest you will pay
over the life of the loans so you can see which option will save
you the most money.
Results Our results box varies based
on what you have entered above and will make it easy for you to
understand the information displayed on the graph.
Graph The graph displays how the
cost savings of each option will grow over time. Your current loan
is represented by the blue line and the new loan is represented
by the red line. You can move the slider to the point where the
two lines intersect, this is the break-even point. If you are planning
to sell the house before this point you should not refinance. However,
if you are planning to keep your home until after this point you
will save money by refinancing.
Click
Here to open the Refinance Calculator
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