Using a Mortgage Refinance Calculator
Refinancing your mortgage could be the best thing for you right now. If you have high interest rates and see that they are lower than what you have now, it could be a good time to start applying for a refinance loan. To help you to determine whether it is a good financial decision, you can use a mortgage refinance calculator. You will need to find out the amount of the loan you will need, the loan term and the interest rate being offered, along with the APR. This will give you an idea of how much your new monthly payment will be after the refinance. Don’t forget to consider the originator fees and other costs that may be tacked onto the new loan.
Is Mortgage Refinancing Right for Your?
To help you decide whether you should get mortgage refinancing, you can calculate the costs of a loan product you’ve found, using a mortgage refinance calculator. You will also need to look at your financial situation to see if you are able afford the monthly payment that you received from your calculation. Make sure to weigh the pros and cons to see if the good outweigh the bad. How much money will you be saving over the long-term? Will it take a long time for you to recoup upfront payments you made for the refinance loan? Are you going to keep the loan or live in the house long enough to make it benefit you? Will the interest rate be lower and will your term be shortened? If these are the factors that you’re looking for, make sure you will get that from your refinance loan. You can figure this out by using a mortgage refinance calculator.
When is a Good Time to Refinance Your Mortgage?
Choosing the right time to have your mortgage refinanced is ideal. Sometimes, it’s better to wait a little bit longer to get the best terms for your refinance loan. Here is what you should be looking for to determine if the time is right for a mortgage refinance:
- The interest rates are lower than your current mortgage rate
- You have an improved credit rating, since the time you first applied for a mortgage loan
- You plan to keep the mortgage for a long time
- The loan allows you to avoid a high-risk mortgage
- You’re able to get an amortizing loan vs. an interest-only loan
Once again, you can use a mortgage refinance calculator to help you decide if these factors will reduce your mortgage payments.
When to Avoid Refinancing Your Mortgage
It’s common sense that if refinancing your mortgage is going to raise your monthly payments and enhance the risk of the loan, then you should avoid doing it. A mortgage refinance calculator can be used to help you determine the risk of the loan based on how high the monthly payments will be. The higher your monthly payment, the higher the risk your loan is. You never know if your household income will decrease, causing you to miss payments and risk foreclosure.
The Benefits of Getting a Refinance Loan
There’s a reason why a lot of people choose to refinance their mortgage. The following list showcases the benefits of refinance mortgage loans and why people choose to get them:
- Reduces loan risk (because it’s more affordable)
- Lower monthly mortgage payment
- Use the cash for other purposes (remodeling, vacation, etc)
- Used to consolidate debt and repair credit (possibly get tax benefits)
- Lower interest rates over the life of the mortgage loan
Mortgage Refinance Programs
If you’re having a hard time getting a refinance loan from a traditional lender or your mortgage servicer, then you can look up available mortgage refinance programs, like HARP (Home Affordable Refinance Program) and MHA (Making Housing Affordable) program. These are available at most lenders, but not all. You will need to have a talk with your mortgage servicer to see if you are eligible for any available refinance programs that they have for mortgages. You can use the mortgage refinance calculator for these programs to help you determine if they are the right option for you.
Getting your home refinanced could be the best thing you’ve done for your financial well-being. If you need to use the funds you receive for expenses, remodeling or to pay off your high-risk primary mortgage, you can do so with a refinance mortgage loan. Use the Internet to shop around for available options today.