Current Monthly Payment
How much are you paying every month for your existing loan? Make sure you input the total figure and not just the interest or the amount of money you pay to deduct from the remaining loan balance.
Balance Left on Mortgage
If your creditor can’t provide the exact figure then don’t worry because this is fairly easy to compute. First, determine how many months you’ve been paying your loan dues. Now, deduct the amount of interest expense from your total monthly loan payment. Multiply the difference with the number of months you’ve been paying. Lastly, deduct the product from the amount of money you originally borrowed and the result will be the remaining loan balance.
Mortgage refinance calculators will also require you to input the interest rates for your current and possibly second mortgage.
Also for comparison, a mortgage refinance calculator will require you to indicate the number of years you’re allowed to pay off your second mortgage as well as the number of years left on your existing mortgage.
How Much It Costs
This is the second category of figures used in mortgage refinance calculators and most of the figures used here could be provided by your future creditor.
Application Fees and Costs
Some mortgage companies charge borrowers with application fees, but this may be waived if you’re eligible for a pre-approved loan. Other fees that may or may not be waived include document preparation, inspection, title search and insurance, credit check, local and miscellaneous fees.
Costs for second mortgage may require you to pay for the fees of your attorney as well as that of the mortgage company.
Step 5 Calculate
Upon keying in the necessary data, click Calculate or Enter in your mortgage refinance calculator and you’ll find out how much your new monthly payment is, how much you’re saving and how many months you can recoup your expenditures.