If you are thinking about refinancing your mortgage, you know that you need to weigh the potential costs against the possible benefits. But how do you figure out if the benefits are likely to outweigh the costs? Although making a determination may seem complicated, in truth, it just comes down to doing some simple math.
Know the Following About Refinancing
- The amount of your existing mortgage
- The interest rate for your existing mortgage
- The loan term for your existing mortgage
- The time left to pay on your existing mortgage
- The interest rate for the new mortgage after you refinance
- The loan amount for the new mortgage
- The loan term for the new mortgage
Once you have that information, you should be able to calculate how much a refinance could potentially help you save.
In fact, to make this math as easy as possible for you, we have put a simple refinancing calculator right on our website. Once you fill in your numbers and click “Calculate,” the calculator will tell you how the monthly payment will compare for the new mortgage versus your existing one, and provide you estimates of the total cost for each.
One more factor you need to consider is the cost of the refinance itself. You will need to subtract that from the amount you calculate you could save after switching to the new mortgage. If the refinance still looks like it will save you money once you subtract that cost, then it makes financial sense to move forward.
Refinance in Florida Now
If you still need help calculating whether you could save money by refinancing, we can walk you through the math. We make the application process fast and easy so you can start saving as soon as possible. Please call 786-220-1100 to begin.