mortgage calculator
Q. When should I refinance my current mortgage loan?
A. It is often said that you should refinance when mortgage rates are 2% lower than the rate you currently have on your loan. Refinancing may be a viable option even if the interest rate difference is less than 2%. A modest reduction in the loan rate can still trim your monthly payment. For example, the monthly payment (excluding taxes & insurance) would be about $770 on a $100,000 loan at 8.5%. If the rate were lowered to 7.5%, the monthly payment would be about $700, a savings of $70. The significance of such savings in any scenario will depend on your income, budget, loan amount and the change in interest rate. Your trusted lender can help calculate the different scenarios.
Home refinance payment calculators can help you determine the feesibility of taking out lowering your current mortgage interest rate vs. the closing costs and fees. It is often said that you should refinance when mortgage rates are 2% lower than the rate you currently have on your loan. Refinancing may be a viable option even if the interest rate difference is less than 2%. A modest reduction in the loan rate can still trim your monthly payment. For example, the monthly payment (excluding taxes & insurance) would be about $770 on a $100,000 loan at 8.5%. If the rate were lowered to 7.5%, the monthly payment would be about $700, a savings of $70. The significance of such savings in any scenario will depend on your income, budget, loan amount, change in interest rate and closing costs and fees. Your trusted lender can help calculate the different scenarios. Find thousands of lenders competing for your loan request at lowest rates. Discount bargain loan programs allow a savings up to 50% on loan costs and thousands of dollars over the life of your loan.
mortgage calculator
Definitions
| Annual interest rate: | Annual interest rate. Maximum interest rate is 20%. |
| Mortgage length (years): | Total length, or term, of your original mortgage in years. Most common lengths are 30 years and 15 years. |
| Original mortgage amount: | The original amount financed with your mortgage, not to be confused with the remaining balance or principal balance. |
| Additional monthly payment: | Your proposed extra payment per month. This payment will be used to reduce your principal balance. |
| Scheduled payment: | Monthly principal and interest payment based on your original mortgage amount, term and interest rate. |
| Accelerated payment: | Scheduled payment plus additional monthly payment. |
| Total savings: | Total amount you would save in interest if you made the accelerated payment until your mortgage was paid in full. |
- posted by Mark Pane @ 7:14 AM 0 comments
