Refinance Mortgage Rate Calculators
Refinance Mortgage Rate Calculators
By: Dean Shainin
Refinancing is a smart move if you want to lower your monthly payment and overall interest
bill. With refinance mortgages, you are also able to change the term of the loan to a shorter one so you can pay off the loan earlier and save
more on interest.
There are actually several reasons why people want to take a refinance mortgage. This is also why refinance mortgage rate calculators are
important. Refinance mortgage rate calculators help consumers determine the amount of savings they can make on their chosen loan type. Refinance
mortgage rate calculators also aid you in finding out how much is your monthly payment for your refinancing loan.
The Internet refinance mortgage rate calculators show you the monthly payments you need to make for your mortgage. Aside from that, these
refinance mortgage rate calculators also show you the total interest rate. If you're more concerned on how much saving you will be able to make
with a refinancing loan, refinance mortgage rate calculators will also help you on that.
The refinance mortgage rate calculator will ask you for your current loan information. For instance, on the refinance mortgage rate
calculator, a field labeled Principal Balance will be provided along with the Monthly Payment and Annual Interest Rate fields. You need fill
these up in order to start using the refinance mortgage rate calculator.
To complete the process, the website's refinance mortgage rate calculator will also ask for your new loan information. Another three fields
will be provided in the refinance mortgage rate calculator. The refinance mortgage rate calculator fields are: Annual Interest Rate, Term, and
closing Costs. By checking on the Finance Closing Costs at the bottom part of the refinance mortgage rate calculator and then hitting the
Calculate button, you can determine how many months it will take for your loan to break even on the closing costs.
For example, for the Principal Balance field on the refinance mortgage rate calculator, you put in $150,000 (Take note that the amount you
place in this refinance mortgage rate calculator field represents the remaining pay-off balance). The Interest Rate of your current loan is 6%
and the data you put in the refinance mortgage rate calculator Monthly Payment field is $899.30.
For the New Loan Information portion of the refinance mortgage rate calculator, you place the following data: 5% Annual Interest Rate, 30-year
Term, and $0 for Closing Costs. Make sure that you check the box for Finance Closing Costs at the bottom of the refinance mortgage calculator
before hitting the Calculate button.
The results of the refinance mortgage rate calculator would show you that your new monthly payment would be $805.23, $93.77 short of your
current loan monthly payment. The refinance mortgage rate calculator would also display the difference in the interest rates of both loans.
With the refinance mortgage rate calculator, you will be able to find that the total
interest of your current loan would be $173,757.28 while your new interest after refinancing would be $139,883.68. This allows you to save
$33,873.61 on interest.About the author:
Dean Shainin is a consultant specializing in home loans, strategies for loan financing, home equity loans, and consolidation loan information. To
see a list of recommended loan companies, tools, resources, free quotes and articles, visit this site: Get free valuable online tips for saving
money from his: Home Mortgage Loan