How to Calculate the Refinancing of Your Mortgage

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Thinking of refinancing your home or loans? Using the simple calculator above will allow you to verify whether or not a refinance is in your best interest.

Step 1

Insert the current balance of your home.

Step 2

Insert your current interest rate and the new interest rate in which you’d receive on the mortgage or loan refinance. The new interest amount is critical because you actually might lose money if your interest isn’t low enough to compensate for the high closing costs.

Step 3

Insert the repayment period. You have the option of 15, 20 and 30 years. I suggest using the 15 or 20 because you don’t want to be extending your mortgage or loans for 30 years unless you have to.

Step 4

Insert your closing costs. This is a bit tricky because if you’ve never done a refinancing before, how on earth would you know about typical refinancing closing costs. There are no closing costs options available but they usually come with a higher interest rate. Erate.com has great info on the typical closing costs for refinancing. Click on the link and scroll down about ten inches to get the bulk of the article.

Step 5

Hit the compute button and to take a look at the data. If you notice a significant savings can be made with a mortgage refinance, I suggest you talk to a professional to see what options you have.

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