Consumption and Real Estate
Where is a mortgage calculator whcih shows whether I should refinance?
Question : Where is a mortgage calculator whcih shows whether I should refinance?
Where do I find a calculator that shows whether it is worth paying a penalty ($ 2700) to break my existing mortgage(4.71%with 2 yrs left to go with a lower rate (3.55%)?
mortgage refinancing calculator
Best answer:
Answer by Steve D
You have two years left to pay on a mortgage and you want to refinance? In addition to the penalty for early payment, don’t forget that there will be closing costs attached to the re-finance. Right ow, you are paying mostly principal on your current mortgage. Any savings you see in your monthly payments will probably be offset by the additional interest you are going to pay by extending the new mortgage to 5, 10 or 30 years.
For calculators on mortgages, try bankrate.com
They have all kinds of calculators and information, including info on how to figure out when it is worth refinancing.
(does “2 yrs left to go” refers to when you don’t have to pay a penalty? If you have many years to go on your mortgage, consider getting a fixed rate if you think interest rates may go up in the future…)
You can even comparison shop for mortgages on bankrate.com.