Mortgage Refinance Savings Calculator

When you refinance a home loan, you replace your original loan with a new loan–one with different terms and conditions, as well as a new (and ideally better) interest rate.

Securing a lower interest rate is a great reason to refinance–in fact, it’s the most common. But there are lots of reasons to consider refinancing, including:

• Lowering your monthly payments.
• Switching from a variable rate mortgage to a fixed rate mortgage.
• Debt consolidation by utilizing your home’s equity through a cash out refinance.

Every little bit counts–and every little bit adds up. A mortgage refinance that saves you even 1% could mean big monthly savings, especially if your loan amount is high. There are other factors to still consider, but it could be worth it to you to lower your rate by 1%.

It’s well worth your time to pay attention to going interest rates for mortgages. If you notice interest rates falling even half a percent, most financial experts agree: it’s a good time to look into refinancing a mortgage.

The bad news is that initially, refinancing a loan will cause your credit score to lower. The good news is that in the long run, your credit score will bounce back as you make regular monthly payments on time.