When you're looking to refinance your home, you have to decide on your particular financial goals. If you're looking to reduce monthly payments and debt, a worthwhile refinance loan or second mortgage can be a great solution. Just make sure to accurately consider the refinancing fees and terms of you new loan to determine whether you're actually saving money over the life of the loan.
It's this kind of information we provide our customers with at Downs Financial, Inc. We provide mortgage calculators that not only will estimate your monthly payment amount, but also give you a breakdown of the interest paid versus principal paid. This way, you can see how much equity you'll build for the duration of the loan term.
Our loan amortization (payment process) calculator requires the loan amount, interest rate (APR or Annual Percentage Rate), and term, in months, of the loan. From there, it will calculate all the pertinent information, which will be extremely useful for you. Your monthly payment amount and interest versus principal information can be the deciding factors. While actual payments may vary slightly, the calculator is a helpful tool nonetheless.
So what do you do with this information once you've got it? If your new monthly payment isn't as low as you want it to be, play with the input factors. Try a different loan amount, a longer or shorter term loan, or a different interest rate. When you get the combination just right, you'll know what to ask for and under which terms you'll get the most for your money.