At Mission Fed, we recognize that it is important to have a Home Loan that matches your plans both now and in the future. In some cases, this may mean refinancing your current mortgage. Refinancing a mortgage means replacing your existing Home Loan with a new mortgage, which pays off your current mortgage.
Some people refinance their homes to save money on their mortgage. How is this possible? Well, your interest rate helps determine your mortgage payment amount. Based on factors like the economy, lending guidelines and your access to lenders with favorable loan programs, interest rates can vary. Once you’ve made some payments on your initial mortgage, you may be eligible for a lower interest rate based on your refinanced mortgage amount being lower than your initial mortgage, the change in your Loan to Value (LTV) ratio (how much of the value of your home is being financed) and your personal credit, which can improve by paying your mortgage on time.
So, you may be asking yourself: Should I refinance my home? And how much money can I really save?
We provide this Home Refinance Calculator to make it easy to estimate how much you could save by refinancing your mortgage to a new mortgage with a lower interest rate, or a shorter term.
Simply enter information about your current mortgage and the new loan amount, including the mortgage type and interest rate, and the number of years that you expect to carry the new mortgage before selling or refinancing your home. Then, add in your property information, including your home’s value, annual property taxes and annual property insurance.
Our Home Refinance Calculator will then compare your current mortgage with a new one, showing you the difference in your monthly payments. It will also show you how long it would take for you to break even based on the difference in payments and your closing costs, and you will be able to see much you could save by refinancing.
Mission Fed makes Mortgage Refinancing easy, with competitive rates on both fixed and adjustable rate Home Loans, as well as no pre-payment penalties and no closing cost options. You can even fill out an online application and receive an answer in minutes.
We’re committed to helping you achieve financial success through competitive financial products and educational resources. This calculator is one of several educational Home Loan Calculators Mission Fed offers to help you take the guesswork out of buying and refinancing a home. If you have any questions about mortgage refinancing, we are happy to help.
Interactive calculators are made available as self-help tools, and we cannot and do not guarantee their accuracy or applicability to your circumstances. All examples are hypothetical and are for illustrative purposes only. Calculators are not intended to provide investment advice, and we encourage you to seek personalized advice from qualified professionals regarding all your personal financial issues.