Mortgage Calculators - Should I Refinance?

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Refinancing is an option one can consider by taking a fresh loan to pay off an earlier loan. Mortgage refinancing implies taking a new loan on the same asset as the earlier loan. Some other reasons that make refinancing an attractive option are:

The new loan can have lower interest rates
Low interest rates imply relatively lower monthly payments
Shorter term of the loan implies savings on interest
Refinancing also helps consolidate debts, finance home improvements etc.
The costs of refinancing can be covered during the term.
The new loan can exchange an adjustable rate for a fixed refinance rate

Online mortgage refinance calculators base their calculations on:

Value of Current Mortgage
Number of Payments made
Amount pending as payments
Annual Property Tax
Annual Home Insurance
Appraised Home Value
Current Interest Rate
Current Term of the loan
Value of new loan
Term of new loan
Interest rate of the new loan

After you input the value you can assess the following factors that impact your decision with regard to refinancing:

Current Monthly Payments Vs Monthly Payments for new loan
Current Monthly PITI Vs. New Monthly PITI ( Principal, interest, Tax and Insurance)
Current Monthly PMI Vs. New Monthly PMI.

Refinance Interest Savings

With this refinance you will INTEREST_SAVINGS_MSG.

Over the life of your new mortgage your total interest paid will INTEREST_SAVINGS and your monthly payment will MONTHLY_SAVINGS per month. BREAK_EVEN_IN_MSG

Refinance Results
Remaining interest on current mortgage	REMAINING_INTEREST_ON_CURRENT_MORTGAGE
Interest on new mortgage	INTEREST_ON_NEW_MORTGAGE
Interest payments	Interest paid will INTEREST_SAVINGS.
Monthly payment	Payment will MONTHLY_SAVINGS per month.
New loan to value	NEW_LOAN_TO_VALUE
Breakeven	BREAK_EVEN_IN_MSG

Refinancing will change your monthly payment for principal, interest, taxes and insurance from CURRENT_PITI to NEW_PITI. Your new loan will be CURRENT_BALANCE at NEW_RATE for NEW_TERM years. Closing costs are estimated at CLOSING_COSTS. To avoid PMI payments on your new loan you need a loan to value ratio of 80% or better. Your loan to value ratio is currently estimated at NEW_LOAN_TO_VALUE. Additional refinancing results are summarized below:

Loan New vs. Refinance Comparison

Home Information
Original mortgage	ORIGINAL_LOAN_AMOUNT
Number of payments made	NUMBER_OF_PAYMENTS_MADE
Current mortgage balance	CURRENT_BALANCE
Annual property taxes	ANNUAL_PROPERTY_TAXES
Annual home insurance	ANNUAL_HOME_INSURANCE
Appraised home value	APPRAISED_HOME_VALUE

	Original Mortgage	New Mortgage
Mortgage amount	ORIGINAL_LOAN_AMOUNT	CURRENT_BALANCE
Interest rate	ORIGINAL_RATE	NEW_RATE
Term in years	ORIGINAL_TERM_IN_YEARS	NEW_TERM
Payment (PI)	CURRENT_PAYMENT	NEW_PAYMENT
Payment (PITI)	CURRENT_PITI	NEW_PITI
Monthly PMI	MONTHLY_PMI	NEWMONTHLY_PMI

Payment Schedule

**REPEATING GROUP**

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

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Definitions

Appraised home value: Current market value of your home.
Original loan amount: Total amount for your original mortgage.
Original rate: Annual percentage rate of your original mortgage.
Original term in years: The total number of years for your original mortgage.
Number of payments made: The total number of payments you have made on your original mortgage.
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 loan amount if you have less than 20% equity in your home.
Current PITI: Current monthly Principal, Interest, Taxes and Insurance payment.
New rate: Annual percentage rate of your new mortgage.
New term: The total number of years for your new mortgage.
New mortgage balance: Total amount for your new refinanced mortgage. This amount is equal to your current balance on your original mortgage. Closing costs and prepayment penalties are assumed to be payable at the time of closing. Closing costs are not added to your new mortgage balance.
Closing costs: Total fees and other costs associated with the new mortgage and paid at the time of closing. This calculator assumes that all closing costs are paid with proceeds other than the new mortgage (closing costs are not added to the total for your new mortgage amount).
New PITI: New monthly Principal, Interest, Taxes and Insurance payment.
New loan to value: Total loan amount divided by the appraised value of your home.

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