What is Loan Refinance?
The financial market is always in a state of change and this can mean ups or downs for everyone. But some changes can be very beneficial if you have an active mortgage. If you are currently making payments on your mortgage then you should consider the option of refinancing your loan. Refinancing your loan will allow you to change the following parameters:
- Your mortgage term period
- Interest rates
- Total amount of the loan
Loan Refinance Calculator
This is a free tool available on websites that allows you to compare your original mortgage details against the details of your new one to see how switching to the new terms affects you in the long term. This calculator will provide a breakdown or graph showing you the savings you will be able to make by changing the terms of your mortgage.
To use this calculator you will generally have to provide the following information:
- Original mortgage total amount
- Original Interest rate
- Years already paid
- New mortgage total amount
- New interest rate
What are the benefits of a loan refinance?
If you are aware that the interest rate in the market has gone down then you can approach a loan officer for consultation regarding the possibility of refinancing your loan. By doing so you will be able to change the terms of your loan and thusly update your interest rates to the lower one that is available in the market. Doing so will provide a lot of savings for your mortgage in the long run. A lower interest rate means that you will be saving on monthly payments, paying off your loan early, or even lowering the total amount of your loan.