Mortgage Refinancing – Use a Mortgage Calculator to Decide
A mortgage calculator will give you a ballpark idea of whether or not it makes sense to consider refinancing your home. Mortgage refinancing can be a money-saving strategy for you if you own your home and pay an interest rate that is at least 1% higher than the current interest rates.
It is hard to qualify these days, even though the rates are lower — there are challenges like needing to own at least 20% equity in your home, have good credit, and a pristine payment record with your current mortgage holder (no late payments). You will need tax returns and financial statements in great detail. Evidence of steady employment or source of income to cover your expenses is a must — no “stated income” options around these days.
To see what you might pay with a refinance (and watch out for bait and switch tactics, as well as high closing costs that get tacked onto your costs after you commit to a loan that initially sounds good), try out this mortgage calculator:
