Refinance Monthly Mortgage- Reduce House Payment

Evaluate Home Loan Refinancing with a Motley Fool Calculator

Jun 1, 2009 Lena Gott

Use a mortgage refinance calculator to evaluate home loan refinancing. Reduce house payments; figure out if a new or existing home mortgage is the better deal.

When mortgage rates are down, many homeowners find themselves contemplating home loan refinancing. But how do they know whether to take action on a potential refinancing deal?

One quick way to evaluate a refinanced mortgage against a current mortgage is to use a mortgage calculator made specifically for evaluating refinancing. This article profiles The Motley Fool’s mortgage refinance calculator.

Motley Fool Mortgage Calculator

The Motley Fool website offers a mortgage calculator that helps consumers determine if they are better off refinancing (look for the calculator named "Am I better off refinancing?"). Users must input information regarding their current loan, terms for the new loan, personal financial information, and property value data. The calculator will indicate if a refinancing scenario will reduce house payments or cost more money in the long run.

Try to Reduce House Payments- Calculate Refinanced Monthly Mortgage Payments

To use this mortgage calculator, first gather the following info (listed in the order it must be input into the refinancing calculator):

Original loan amount
Original term (number of years)
Years already paid
Balloon year, if applicable
Interest rate on existing loan
Terms of new loan & balloon year, if applicable
Discount points, if any
Origination fee (reflected as a percentage)
Upfront costs
Interest rate of new loan
Appraised property value
Annual property tax amount
Annual property insurance amount
Your personal savings rate (percentage of income)
Your personal federal and state tax rate (the combined percentage)
Years before the house will be sold again

Mortgage Refinance Calculator- Are New Lower Monthly Home Loan Payments Possible?

Input the above information into the refinancing calculator, then hit “get your results.” The next screen will display estimated savings or costs associated with refinancing according to the terms entered. For comparison purposes, users will see their current monthly payment versus their refinanced monthly payment. Interesting tips may be displayed, if applicable, such as whether or not PMI will be deductible or if the user should consider taking advantage of any homebuyer tax credits.

Use a Mortgage Calculator to Evaluate Home Loan Refinancing

Other comparative information between the two home loan options are displayed in graph and chart form on separate tabs. In these charts and graphs, information will be presented to further clarify the suggested action (whether to keep the current home loan or refinance it). For instance, if refinancing would result in more monthly out-of-pocket expenses, total out-of-pocket expenses for both options may be depicted on a color-coded graph. A monthly schedule of payments for both loan options may be shown in table format. Individuals can use this visually-depicted information to analyze monthly payments and cumulative interest paid by month.

Where to Find Other Mortgage Refinance Calculators

The Motley Fool website offers just one of many online mortgage calculators that can help homeowners evaluate a home loan refinance decision. Other calculators can be found on mortgage-calc.com and bankrate.com. Consumers should consider using a mortgage calculator before making the final decision to refinance a home loan.

Understanding Fixed & Adjustable Mortgage Loans

The copyright of the article Refinance Monthly Mortgage- Reduce House Payment in Mortgages/Loans is owned by Lena Gott. Permission to republish Refinance Monthly Mortgage- Reduce House Payment in print or online must be granted by the author in writing.

Refinance Monthly Mortgage to Reduce House Payment	Refinance Home Loan; Use a Mortgage Calculator	Mortgage Refinance Calculator on Motley Fool
Evaluate Home Loan Refinancing to Save Money