Refinance Mortgage Calculator

Wednesday, December 2, 2009

Author : Thomas Goldman

A refinance mortgage calculator will give you information to help you make a decision on the option of refinancing a mortgage. There are lots of such calculators available online (a search for that phrase will return a large number of choices) and they are generally free and easy to use.

Refinancing is where an original loan is paid off by a new loan on different terms. While theoretically refinancing can apply to any type of loan, it is almost always applied to mortgages. The terms of the new loan might be a lower interest rate or payment over a longer term, both of which decrease the monthly repayment required on the mortgage.

However, there are usually fees to be paid when refinancing, so just the different in the terms of the original and new loans are not enough to make an informed decision. There might be penalty fees to be paid when paying off the original loan early, as well as closing costs and maybe other fees to be paid when opening the new loan. The calculator can help you take these things into consideration when considering refinancing.

A calculator might include such things are "current loan interest", "interest rate", "term (in years)", "current loan amount", "current loan payment", "current loan's interest rate" etc. "new interest rate", "new loan term", "costs related to the new loan", "property location", "loan costs", "property value", "loan points", "years before sale", "new interest rate", "term in years", "pre-payment penalty", "closing costs on new mortgage", "number of points on new loan" etc. All these figures are things which your advisors for the original and new mortgage can easily tell you.

Sometimes refinancing can result in major savings overall, but might entail significant costs in the short term.

A refinance mortgage calculator is easy to find online and won't usually cost you anything to use.

For more relevant information see our Blog Post: Refinance Mortgage Calculator.

For more relevant information see our Blog: Mortgage Reports.

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