Calculating how much you could save if you refinanced your home used to be a hard process, involving a lot of precise and time consuming mathematics. The great news is that you can use our refinance calculator to do some of that math for you. It can save you time and, potentially, money.
You can check it out here or follow along with the images below.
The top of the refinance calculator shows the original lease amount, the current term, and the current monthly payment. You can adjust these variables, and the sliders, below to estimate your new payment and savings.
Let’s look at an example.
Say your original lease amount was $500,000 on a 30 year fixed term with an interest rate of 5.625%. As you can see when you set these numbers in the calculator, your monthly payment would be $2,878.28.
Now, let’s say you want to refinance at today’s interest rate. Below the slider that sets the interest rate you’re currently paying is a slider that lets you adjust how many years you’ve been paying at your current rate.
We want to see what it would be at a 5.625% rate for only 6 months. We’ll set the slider to .5 years and at the end of the slider you’ll see your current balance remaining on your lease.
In the above image, the new interest rate is at 6%, but we want to see what it would look at if we refinanced at 4.75
As you can see, you’d save an additional $237.80 in payment savings and your monthly P&I payments would decrease by $380.60.
This is a great tool to explore. Even if you just want to budget for a future spike or crash, the calculator automatically calculates numbers based on manipulating the interest rates.
If you have any questions on how to use the refinance calculator or any of the other calculators on our website, you can always reach out at firstname.lastname@example.org.BACK TO LIST