Re-finance My Mortgage Calculation
Mortgage Refinance Calculator
This online refinance calculator will help you easily compare your current mortgage loan with other refinancing options.
Results...
| Current Loan | Refinanced Loan | |
|---|---|---|
| Monthly Payment | 700.00 | 368.33 |
| Total Interest | 1,338.98 | 2,099.83 |
| Total Payments | 21,338.98 | 22,099.83 |
By refinancing your current loan balance of 20,000.00 at 5% over 5 years, you will decrease your monthly payments by 331.67.
Mortgage Refinancing Definition, Examples
Mortgage refinancing is the process of replacing your mortgage or mortgages on your property with a new mortgage.
Example:
John has a mortgage for $100,000 with Bank X at an interest rate of 5.30%.
John discovers he can obtain a mortgage for $100,000 with Bank Y at an interest rate of 3.50%.
John then takes out a loan with Bank Y for $100,000 at 3.50% interest,
Bank Y will use to $100,000 to pay off Bank X.
John is under no further obligation to Bank X, since they have been paid in full, and he will now pay Bank Y.