REFINANCE CALCULATOR

First, we’ll ask for your current loan details:

• Original loan amount: The total amount you borrowed when you first got your mortgage. This helps establish your starting point and compare how much you’ve paid down.
• Interest rate: The rate you’re currently paying on your mortgage. This is used to calculate your existing monthly payments and total interest.
• Current term (months): The full length of your original loan. 15 years = 180 months. 30 years = 360 months.
• Origination year: The year you took out your mortgage. This lets the calculator estimate how much time is left on your loan.

Then we’ll ask for the new details of your refinance:

• New loan amount: The amount you want to borrow with your refinance. This could match your current balance or be higher if you’re doing a cash-out refinance.
• New interest rate: The projected rate on your new mortgage. This will be used to compare your current rate against your potential new one to see if you’ll save money.
• New loan term (months): The number of months you plan to take to repay the new loan. 15 years = 180 months. 30 years = 360 months. This affects your monthly payment and total interest.
• New refinance fees: The closing costs or fees associated with refinancing your mortgage. These can include lender fees, appraisal costs, title insurance, and more. The calculator uses this to give a more accurate picture of your break-even point and savings. If you’re not sure of the amount, ask your Movement loan officer.

While our calculator provides valuable estimates, remember:

• Results depend on the accuracy of your inputs.
• Final loan terms may vary based on lender-specific criteria.
• Speaking with a loan officer ensures a precise refinance assessment.
• The calculator does not factor in all possible lender fees, so working with a mortgage expert is advised.
• External factors, like economic trends and lender-specific policies, can impact refinance rates.

Before refinancing, take these key financial factors into account:

Interest Rates

• Lower rates can significantly reduce your monthly payment.
• Small percentage changes can lead to big long-term savings.
• Check current market trends to ensure you refinance at an optimal time.
• Fixed-rate vs. adjustable-rate mortgage options can impact long-term costs.

Loan Term

• Shorter terms (e.g., 15 years) often mean higher payments but lower total interest paid.
• Longer terms (e.g., 30 years) lower monthly payments but increase overall interest costs.
• Consider how a new loan term aligns with your financial goals.
• Assess how a longer-term loan affects your retirement or other investments.

Credit Score

• A higher credit score typically qualifies you for better refinance rates.
• If your score has improved since your original mortgage, you may secure a lower rate.
• Monitor and improve your credit before refinancing to maximize benefits.
• Consider how debt-to-income ratio impacts refinancing eligibility.

Closing Costs

• Expect fees such as origination charges, appraisal costs, and title insurance.
• Ensure you stay in your home long enough to recoup these costs.
• Compare lender fees to find the best deal.
• Understand how rolling closing costs into the loan affects long-term savings.

Remaining Loan Balance

• If you have substantial home equity, you may qualify for better refinancing options.
• Low equity may require private mortgage insurance (PMI), impacting savings.
• Evaluate how your home’s value affects your refinancing opportunities.
• Consider how cash-out refinancing impacts home equity.

Refinancing makes sense if:

• Interest rates have dropped:If current market rates are lower than when you got your original loan, refinancing could reduce your monthly payment and save you thousands in interest over the life of your loan.
• You have an adjustable-rate mortgage (ARM): Switching to a fixed-rate mortgage can provide long-term payment stability, especially if you’re nearing the end of your fixed introductory period or worried about rising rates in the future.
• Your credit score has improved: A higher credit score may qualify you for better interest rates or loan terms than you originally received, potentially reducing your payments or the amount of interest you’ll pay overall.
• You want to tap into home equity: Equity refinance lets you use the amount of the home you own to fund renovations, pay off high-interest debt, or invest elsewhere — often with lower interest rates than credit cards or personal loans.
• You want to shorten your loan term: Refinancing to a shorter term, like moving from a 30-year to a 15-year mortgage, may increase your monthly payment but reduce your total interest and help you pay off your home faster.
• You want to switch loan types: For example, refinancing from an FHA loan to a conventional loan could eliminate private mortgage insurance (PMI), lowering your monthly costs once you meet equity requirements.

However, refinancing might not be ideal if:

• You plan to sell your home soon: Refinancing usually comes with upfront costs. If you’re planning to move or sell your home within the next few years, you may not stay long enough to recoup those expenses through monthly savings.
• Closing costs outweigh your potential savings: Refinance fees are typically calculated as a percentage of your loan amount. If the amount you’d save in interest doesn’t offset those costs within a reasonable timeframe, refinancing may not be worthwhile.
• Your new loan term significantly extends your debt timeline: Resetting your mortgage to a new 30-year term can lower your monthly payments but may lead to paying more interest over time, especially if you’ve already paid down several years on your current loan. But don’t worry, talk to your loan officer about options that don’t extend your term.

• Focusing Only on Rates: Lower rates are great, but they don’t tell the whole story. Even with slightly higher rates or longer terms, some loan options may still help you meet specific goals, like improving cash flow, consolidating debt, or funding home improvements.
• Not Staying on Top of Your Credit Score: Your credit score plays a major role in the refinance rate you’ll be offered. If your score has dropped or isn’t where you thought it was, you may not qualify for the lowest rates shown in the calculator, which could change your expected savings.
• Assuming Immediate Savings: Some refinance options may lower your payment but come with higher upfront costs or longer terms that increase the total cost of the loan. Work with a loan officer to calculate your break-even point—how long it will take for your savings to outweigh the costs—especially if you don’t plan to stay in the home long-term.
• Overlooking Alternative Loan Options: Refinance calculators default to a standard fixed-rate loan. But there are other options, like adjustable-rate mortgages, shorter terms, or cash-out refis. Contact a Movement loan officer to explore different loan types can help you find the best fit for your financial goals.

Refinancing isn't just about lower payments— it can also help homeowners achieve broader financial goals. Here are some refinancing strategies that might benefit you:

• Cash-Out Refinance: Leverage your home’s equity to access cash for major expenses like home renovations, debt consolidation, or investments.
• Rate-and-Term Refinance: Change your loan structure without taking out additional cash to secure better terms.
• Streamline Refinance: If you have an FHA or VA loan, a streamline refinance could provide a hassle-free way to lower your rate with minimal paperwork.
• Debt Consolidation Refinance: Roll high-interest debts into your mortgage to simplify payments and potentially lower your overall interest costs.