Purpose: Thinking about refinancing to lower your monthly payment or get access to your equity? See if it makes financial sense by using this calculator. Don’t forget to include a generous amount for closing costs – usually 2% to 6% of the loan. Depending upon how long you’ve had your mortgage, refinancing simply to get a lower rate doesn’t always make sense.
Tips & Insight: Saving money on interest isn’t the only reason people refinance; in fact, most people refinance for specific expenses – college education for their children or themselves, to pay for a wedding, to get funds for starting a business or for other purposes that need a relatively large amount of ready cash. The key to successfully refinancing is to look into all options of funding – for instance, scholarships or small business loans – and then use this calculator to see which option makes the most financial sense.