Would you like to know what a refinance calculator is and how it can benefit you? If so, this the place for you to know about refinance calculator. Here we will discuss everything you need to know about these calculators so that you can determine if refinancing your mortgage is the right decision for you. We’ll cover what a refinance calculator is, how they work, and some of the benefits they offer.
By the end of this post, you’ll be able to answer the question: “What is a refinance calculator?”. So let’s get started!
What is refinance calculator?
A refinance calculator is an online tool that allows you to compare the estimated cost of refinancing your mortgage with the current interest rate and your monthly payments. It can also help you estimate how much money you’ll save over time by applying for a lower interest rate. These calculators generally come in three different flavors:
- A basic version that allows you to input your information and receive one round of results.
- An advanced option that lets you run multiple scenarios on different interest rates, loan amounts, closing costs, etc., so you can compare the estimated savings across several variables.
- A 3D visual calculator, which gives you a 3D simulation of your new and current mortgages with side-by-side comparisons (think: what you would see on the Home Shopping Network).
How the refinance calculator work?
Using these calculators is easy. All you need to do is fill out your information in the fields provided, such as your annual income, home value, and current interest rate. Then, you’ll enter the information requested, such as how much of a monthly savings you need or can afford and what that will mean for your monthly payment. From there, the calculator estimates closing costs, your new interest rate and mortgage amount, savings from refinancing your current mortgage, and more. In short: All you have to do is enter your information and the calculator does the rest.
How are they beneficial?
There are many benefits to using a refinance calculator, some important benefits of this calculator are given below.
- Potential savings of hundreds or thousands of dollars each year
- The ability to easily compare different interest rates and monthly payments, without having to fill out sheets of paper with numbers.
- This the help of refinance calculator you can easily determine how much you save the payment monthly.
- If you are not sure that the 15 years or 30 years loan is best then this calculator will definitely help you in this.