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There are several ways the best 15 year refinance calculators save money. These calculators display the cost-efficiency of prospective mortgage rates or terms and their fit for homeowners’ unique needs. In fact, many homeowners determine which factors hold the most weight in their refinancing decisions using personalized mortgage analysis offered by these tools. As a financial professional, save significant amounts on interest, monthly payments, and insurance by inputting accurate information about your mortgage into a refinance calculator. Of course, you can also use bill consolidation to lower your interest payments. Read on to discover several ways the best 15 year refinance calculators save money.
Lower Interest Rates
Lowering interest rates is the most common way refinance calculators save money. Determine the cost-efficiency of refinancing using the calculator, and consider lowering mortgage rates while keeping the repayment terms the same. Use your calculator data to highlight when to refinance at lower rates without extending the term of your mortgage. This way, your monthly payments are reduced significantly, especially if your credit score is better than it was at the start of your mortgage term. Surely, determine the best refinancing opportunities to lower interest rates using 15 year refinance calculators.
Eliminating Private Mortgage Insurance
Refinance calculators often save homeowners significant costs by eliminating private mortgage insurance (PMI). Refinancing often enables homeowners to eliminate their PMI costs if the new mortgage has a balance below 80% of the home’s value. Capitalize on these chances by determining how much value your home has gained since you got a mortgage using the calculator. However, many mortgages contain terms requiring homeowners to wait at least 2 years before refinancing to eliminate PMI. Additionally, the Federal Housing Administration prevents borrowers from getting rid of PMI on their loans entirely. Absolutely, highlight your home’s increases in value using a refinance calculator to eliminate PMI costs.
Switching to Fixed-Rate Mortgage
Refinance calculators often provide homeowners the insights they need to switch their mortgages from adjustable-to fixed-rate. With fixed-rate mortgages, homeowners save significant costs due to budgeting with consistent payment and interest rates. Additionally, fixed-rate mortgages prevent monthly costs from increasing in the event rates increase. However, consider how long you’ve had your mortgage and how long you plan on keeping it to maximize your refinancing savings. Since most ARMs tend to start with fixed rate periods, refinancing to 15 year mortgages before the end of that period can increase interest rates instead of reduce them. Certainly, provide more consistent interest rates and budgets by switching to a fixed-rate mortgage.
Mortgage Term Length
There are several additional mortgage terms refinance calculators enable homeowners to save significant costs on. For example, changing the length of your mortgage increases monthly payments, but reduces their frequency. This way, interest costs are significantly reduced since the loan is paid off sooner. Alternatively, refinancing to increase loan terms frees up capital for other investments, but overall increases total first and second mortgage costs. Use a calculator to determine the cost-efficiency and ROI of increasing or decreasing term lengths for your specific needs. Definitely, increase home equity or decrease interest costs using refinance calculators to change your mortgage term length.
Break Even
Lastly, most refinance calculators demonstrate an insight called the break even point. This insight simply displays how long it takes for your refinancing savings to outweigh refinancing costs. Since refinancing costs are often significant, break even insights tend to highlight the financial feasibility of refinancing at certain times. Additionally, you’ll more easily determine the cost-efficiency of your refinancing plans. Of course, easily visualize the best times to refinance using break even insights found on most calculators.
Using 15 year refinance calculators saves homeowners money in a myriad of ways. For example, determine the best refinancing opportunities to lower interest rates using 15 year refinance calculators. Second, highlight your home’s increases in value using a refinance calculator to eliminate PMI costs. Third, provide more consistent interest rates and budgets by switching to a fixed-rate mortgage. Next, increase home equity or decrease interest costs using refinance calculators to change your mortgage term length. Finally, easily visualize the best times to refinance using break even insights found on most calculators. When wondering about ways 15 year refinance calcuators can save money, consider the methods described above.
