Sometimes adding those extra costs to your new monthly mortgage payments can negate any savings the refinance would otherwise get you. Planning to move soon or have a job that uproots you regularly? Refinancing may not make sense because it generally takes some time to recoup those up-front closing costs. And one more reason you might want to hold off on refinancing your mortgage : if you have to pay a penalty on your original mortgage.
Again, this could totally negate the savings of the refinance. Ultimately, whether you should refinance your current mortgage will come down to your specific situation. Happy number crunching! Zoom between states and the national map to see the top counties in each region, and scroll over any county for more information. Methodology Refinance mortgages are an important part of the overall mortgage industry, saving homeowners billions of dollars every year.
So where is refinancing having the biggest impact? To answer that question, SmartAsset looked at data on pre- and post-refinance interest rates, and the total balance of refinanced mortgages in every county in the U.
Specifically, we applied the regional average pre-refinance interest rate and the regional average post-refinance rate to the total balance of refinanced loans in every U. That gave us the expected total interest payments with, and without, refinancing.
The difference between those two numbers yielded the total refinance savings by county. We also divided the total savings by the number of loans per county to produce the average savings per refinance.
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Your Details Done. Mortgage Details. Current Home Value. This will help us determine the amount of refinance you can qualify for. Current Mortgage Details. This will help us determine whether or not you will qualify for a refinance. Do you know your mortgage balance? Yes No. Current mortgage balance. Initial mortgage balance. Remaining mortgage term. Mortgage start year. Mortgage interest rate. Your location will help us find available mortgages and calculating costs specific to your area.
Each is based on the simple fact that the longer the term of your loan, the more interest you will pay. On the other hand, if you shorten the loan term you will pay a lot less in interest over the life of the loan.
Refinanced Mortgage. Points These are fees paid directly to the lender at closing in exchange for a reduced rate. Refinanced Mortgage 2. X Remove. Refinanced Mortgage 3. Email PDF. Loading your results. Click Update Results to refresh. This graph displays your savings over the loan term and when you will break even.
Click on the points on the graph to see more details. This graph displays your current monthly mortgage payment versus your monthly mortgage payment if you were to refinance. Use the slider underneath to see the breakdown of each payment for any month.
Move slider to compare payments for the selected month. Click on the graph to see more details. How to Use the MoneyGeek Refinance Calculator The MoneyGeek Refinance Calculator is designed to help you make a smart, fully informed decision if you're thinking about refinancing your mortgage.
Lock in your rate today. The scoring formulas take into account multiple data points for each financial product and service. Minimum credit score on top loans; other loan types or factors may selectively influence minimum credit score standards. MoneyGeek Rating MoneyGeek's ratings are determined by our editorial team.
Get matched with a top agent in your area. Every time. Total Savings The amount of cash savings from refinancing the amount you save in monthly payments plus the difference between the balance you owe on your current home loan and your new loan. Breakeven At this point, you will have recouped your closing costs.
Next steps See if you can get a better rate. Through year 5 Tax deductions on interest paid have not been factored in. Cash savings The cumulative monthly cash savings you will have accrued from paying your new monthly mortgage payment compared to your old monthly payment.
Difference in equity The difference in principal on your new loan compared to your old loan. Original principal remaining. Total savings The amount of cash savings from refinancing the amount you save in monthly payments plus the difference between the balance you owe on your current home loan and your new loan. Cash savings. I want to lower my Monthly payments Total mortgage interest. Original mortgage details Amount The amount of your loan when you first took it out.
Interest rate The interest rate of your loan when you first took it out. Origination year The year you took out your loan. Cash-out amount The amount of your home's equity you plan to receive in cash. This amount gets added to your new refinance balance.
You may not have had the down payment you wanted. You may taken on more than you could really afford in your enthusiasm to own your first home. Refinancing can be the answer for many homeowners trying to balance their budget and meet their financial goals.
In some cases, it can save you hundreds of dollars a month. However, it is not always the most appropriate solution. It's important to understand the pros and cons to ensure that you make the right decision for your personal circumstances. If you only need a small sum of money or rates have risen it might make sense to keep your current mortgage and tap your equity using either a home equity loan or a revolving home equity line of credit instead. One of the best signs that it's a good time is that interest rates have dropped or that you now qualify for lower interest rates based on your improved credit score or credit history.
Typically, a full point or two is necessary to make refinancing worth your while. The savings from a half-point or less may take years to offset expenses, depending on the terms of your loan.
Another good reason to refi is if you want to get out of an adjustable-rate mortgage or to eliminate a second mortgage loan , or a piggyback loan.
When your ARM is going to reset to a higher interest rate, you may be able to shift into a fixed-rate loan with a lower interest rate. Of course, your credit history will need to have improved significantly from when you were approved for the original loan. You can also refi to consolidate two loans into one single loan with one monthly payment. FHA loans are easier to qualify for than conventional loans, allowing both low down payments and lower credit scores. An often overlooked reason to refi is to pay off your home more quickly, perhaps in preparation for retirement.
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