Mortgage Refinance Calculator
Compare your current mortgage with refinancing options to see if you could save money with better rates or terms.
This calculator is being provided for educational purposes only. The results are estimates based on information you provided and may not reflect Local Lending Co. product terms. The information cannot be used by Local Lending Co. to determine a customer's eligibility for a specific product or service.
Understanding Mortgage Refinancing
Refinancing your mortgage can help you lower your monthly payments, reduce your interest rate, or access home equity. Use our calculator to evaluate if refinancing makes financial sense for your situation.
When to Consider Refinancing
- •Interest rates have dropped significantly below your current rate
- •Your credit score has improved since your original mortgage
- •You want to switch from an adjustable to a fixed-rate mortgage
- •You need to lower your monthly payments
- •You want to pay off your mortgage faster
Understanding Closing Costs
Refinancing involves various closing costs that can impact the overall benefit of refinancing:
- •Application and origination fees
- •Home appraisal costs
- •Title search and insurance
- •Attorney and recording fees
- •Points paid to lower interest rate
Break-Even Analysis
Understanding your break-even point is crucial when deciding to refinance:
- •Calculate monthly payment savings
- •Total all refinancing costs
- •Divide total costs by monthly savings
- •Consider how long you plan to keep the home
How to Use This Calculator
Follow these steps to evaluate your refinancing options:
- •Enter your current monthly payment and loan details
- •Input the new loan amount and terms
- •Include estimated closing costs
- •Compare monthly payments and total costs
- •Review the break-even analysis
Important Considerations
Before deciding to refinance, consider these factors:
- •How long you plan to stay in your home
- •Your current loan terms and conditions
- •Your credit score and financial situation
- •Current market rates and trends
- •Total cost of refinancing including fees
Remember that refinancing starts your loan term over, which could mean paying more in total interest over the life of the loan despite lower monthly payments.