Mortgage refinance calculator: Calculate your potential savings if you refinanced
Advice Corner
Mortgage Terms - Defines the common terms related to mortgage finance
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Mortgage Approval Process - Lays out the process for obtaining mortgage approval
Mortgage Foreclosure Scams - Beware of Con Artists
8 Tips for Avoiding Home Foreclosure
Foreclosure Causes
HOPE for Homeowners (H4H) Mortgage Refinance Program
Financial Crisis: How Did We Get Here?
Refinance Interest Savings
How much interest can you save if you refinanced your mortgage? Use this refinance calculator to find out - whether you have bad credit or not.
Enter the specifics about your current mortgage loan, along with your current appraised value, new mortgage loan term, interest rate and closing costs. This will determine how much interest you can save on your refinancing. Additionally, you can calculate the number of months to breakeven on closing costs based on the reduced monthly payments. Click "View Report" button for a detailed look at the results.
Refinance Interest Savings - Definitions
Appraised home value - Current market value of your home.
Original loan amount - Total amount for your original mortgage loan.
Original rate - Annual percentage interest rate of your original mortgage loan.
Original term in years - The total number of years for your original mortgage loan.
Number of payments made - The total number of payments you have made on your original mortgage loan.
Annual property taxes - Your annual property taxes.
Annual home insurance - Your annual homeowner's insurance premium.
Monthly PMI - The amount you pay each month for PMI. This is usually between 0.5% and 2% annually of your mortgage loan amount if you have less than 20% equity in your home.
Current PITI - Current monthly Principal, Interest Rate, Taxes and Insurance payment.
New rate - Annual percentage rate of your new mortgage loan.
New term - The total number of years for your new mortgage loan.
New mortgage balance - Total amount for your new refinanced mortgage loan. This amount is equal to your current balance on your original mortgage loan. Closing costs and prepayment penalties are assumed to be payable at the time of closing. Closing costs are not added to your new mortgage loan balance.
Closing costs - Total fees and other costs associated with the new mortgage loan and paid at the time of closing. This refinance calculator assumes that all closing costs are paid with proceeds other than the new mortgage loan (closing costs are not added to the total for your new mortgage amount).
New PITI - New monthly Principal, Interest Rate, Taxes and Insurance payment.
New loan to value - Total mortgage loan amount divided by the appraised value of your home.
When refinancing (refi) your home mortgage, consider the HOPE for Homeowners (H4H) program which intended to help homeowners at risk of default and foreclosure on their mortgage refinance into more affordable mortgage loans.
Mortgage interest rate Lock-in
When you are looking for a mortgage loan, whether for a new home purchase or mortgage refinancing, you’re likely to shop among several lenders for the most favorable mortgage interest rate, the lowest points and other up-front charges. Use this mortgage loan calculator to evaluate different scenarios and choose the best loan for you.
When you find the most favorable terms (mortgage interest rate, the lowest points, etc.), you will apply to that lender. However, at closing, you may not receive the terms you applied or bargained for. You may find that the mortgage interest rate has changed and the costs have increased.
Lock-ins on your mortgage interest rates and points can offer you a way to ensure that the terms you applied for is what you actually get at closing.
A lock-in, referred to as a rate-lock or rate commitment, is a lender’s promise to hold the applied for mortgage interest rate and points for you, generally for a specified period of time (60 or 90 days), while your mortgage loan application is processed.
A lock-in can be useful because it can take the lender several weeks to process your mortgage loan application, during which time, mortgage interest rates can change. However, if the mortgage interest rate and points are locked in, you will be protected against increases while you wait.
A lock-in is generally favorable to borrowers during a rising mortgage interest rate environment and conversely is unfavorable during a declining mortgage interest rate environment.