What is a Refinance Calculator?
A refinance calculator is a tool that helps you compare your current loan (like a mortgage or car loan) to a new loan. It shows if you can save money by switching.
How do I use a refinance calculator?
You enter your current loan’s details (balance, interest rate, remaining time) and the terms of the new loan you are considering. The calculator will then estimate your new monthly payment and your total savings.
When should I refinance my mortgage?
You should consider refinancing if you can get a new loan with a lower interest rate, if you want to lower your monthly payments, or if you need to take cash out of your home’s equity.
What is a “cash-out” refinance?
A cash-out refinance is when you take out a new, larger mortgage that pays off your old one. You receive the difference between the two loan amounts in cash.
What is a “break-even point” in refinancing?
This is the amount of time it will take for the money you save (from a lower payment) to cover the closing costs of your new loan. After this point, you begin to see real savings.
Can I use this calculator for a car loan?
Yes, a refinance calculator can be used for mortgages, auto loans, or personal loans. The goal is always to see if a new loan’s terms are better than your current one.
What are refinancing closing costs?
These are fees you pay to get the new loan, such as appraisal fees, title fees, and application fees. A good calculator will help you include these costs to see your true savings.