Refinance Home Mortgage Calculator

Use our Refinance Home Mortgage Calculator to decide if this is the right time to refinance. The real estate market has been improving for the last few years, and interest rates have remained extremely low. You can calculate your mortgage https://www.mortgagecalculator.org/ and change the terms and rates to determine if it is the right time to refinance. Often times a client will ask us to sell their home at a small loss, or potentially gain a few thousand on the sale. This is fine, but it is good to know your options.

When we look deeper we find that the clients often have unfavorable lender terms and conditions. Also, current rates might be lower than your locked in rate. Though you may not borrow more than the value of the home. It may be worth talking to an agent to evaluate your situation and help you with options moving forward. If your property is “Underwater”, it is likely that you can rent your home. As such, you will earn positive cash flow after making all escrow payments. Ask your agent or manager about refinancing and potentially renting your home until you are able to sell.

Banks will generally want to see an 80% loan to value when considering the best rates for a refinance, but this is not always the case. Loan to value is the amount you owe versus the appraised value of the house. A $400,000 loan payoff on a house evaluated to sell for $500,000 is an 80% loan to value. An additional benefit of being at the 80% loan to value is that you will no longer pay mortgage insurance, something a savvy investors will look to avoid. If you are nearing your 80% LTV we advise you to refinance to end the monthly mortgage insurance payments.

When you refinance to an 80% LTV you will likely get a check for the amount of mortgage insurance you have paid thus far, but consult the terms of your loan or ask your investment manager. You will likely be able to refinance on a property even with a 95% loan to value or greater. We advise you to contact your real estate agent or investment manager as they may have relationships with lenders that will favor you.

A note about FHA loans as of 2014: Mortgage insurance will stay for the life of the loan regardless of reaching the 80% LTV. Be careful when locking in rates with your lender. Ask your agent/manager to physically be present when you are negotiating your mortgage terms. When refinancing, consider a quitclaim deed to remove individuals from the deed. You may also change the ownership from an individual or individuals to an LLC or S Corporation.

A refinance has a cost associated with it, but you can borrow money to pay out of pocket expenses. Generally the money you save with a lower interest payment will offset the costs of the refinance. Ask your secondary lender what the costs of refinance will be to you.
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