Where the lenders compete for You! This Refinance Calculator makes it easy to cash out refinance percentage your potential savings from refinancing your mortgage. Use the top portion to enter the information from your current mortgage, then the «new mortgage» section immediately below to enter the figures for refinancing. PMI, if needed, is calculated automatically.
It will calculate your monthly payments and savings from refinancing, and will figure how much more you might end up paying over the long term if you choose the third option, lengthening your loan. When you refinance, you’re simply replacing your old mortgage with a new one. You go through the same steps and provide the same information you did when you got your original mortgage, and go through the same approval process. When the new mortgage is approved, those funds are used to pay off the old loan and you go simply go forward with the new loan instead. How much will you knock off your monthly payments?
How long will it take for those savings to exceed your closing costs from refinancing? Can you afford to shorten your loan term? If you stretch out your mortgage to a longer term, will that cost you more in the long run? These are the questions you need to answer before refinancing. This calculator can help you get those answers.
In the first part, «Original mortgage,» enter the information for your current mortgage. The «appraised value» should be the value of the home at the time you purchase it or otherwise took out the loan, not the current value. The calculator uses that to determine if you’re presently paying for mortgage insurance. When you refinance to a lower rate, that reduces the size of your mortgage interest deduction, which affects your savings from refinancing. The Mortgage Refinance Calculator can take that into account, which is why it asks for your income tax rate.