See How Much You Could Save on Your Home Loan with a Mortgage Refinance Calculator

If you already have a mortgage, you could be paying too much for your home loan. If you were to refinance today, how long would it take to breakeven on a mortgage refinance? How much could you save and how much lower could your payments be? If you aren’t sure of the answers to any of these questions, a mortgage refinance calculator may be able to assist.

Is Refinancing Right for You?

Refinancing is a major decision and one which you shouldn’t make without utilizing all of your resources. A mortgage refinance calculator is a good first step toward helping you make sense of the numbers and common mortgage terms. This will assist you in devising a better plan to manage your financial situation accordingly. A good place to start is by using Aurora Bank’s refinance calculator. This simple Web-based program takes only a minute to download, and there’s no complicated software to install on your computer.

How to Use the Calculator

Using the mortgage refinance calculator is simple and straightforward. Simply enter a few numbers, such as your original mortgage amount, term, and how many years you have left, and enter in your current income tax rate and then let the calculator crunch the numbers.

If you happen to know how much your home appraised for when you bought it as well as its current value; you can enter those too.

The mortgage refinance calculator will then show you how much you might save by refinancing your home loan. This includes an estimate of your new monthly mortgage payment with a breakdown showing what is going to principal and interest as well as your possible breakeven savings. If you have PMI (private mortgage insurance), you can also see what your monthly premium might e, as well as any points paid to the lender and how those factor into the total amount. (You should also consider other housing expenses, such as the taxes and insurance on your home.) At a glance, this calculator lets you compare what you’re paying now to what you might be paying toward your home loan if you decide to refinance today.

Understanding Mortgage Terms

The mortgage refinance calculator of your choice should also include helpful definitions and easy to understand instructions for common mortgage terms in order to get the best use out of the results. Keep in mind that this is only a tool to help you get started and the figures presented are for illustrative purposes only. Home loan interest rates can change daily, which is why it’s important to know the correct time to refinance by speaking to a home loan consultant.

 

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