Refinance Calculator: Should I Refinance My Mortgage?
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A cash-out refinance is a refinancing option that allows you to pay off your existing mortgage with a larger loan. You’ll receive the difference as a lump sum to use how you’d like (minus any closing costs and fees). Use Zillow’s home loan calculator to quickly estimate your total mortgage payment including principal and interest, plus estimates for PMI, property taxes, home insurance and HOA fees. Enter the price of a home and down payment amount to calculate your estimated mortgage payment with an itemized breakdown and schedule.

Who is a rate-and-term refinance best for?
Kiah Treece is a small business owner and personal finance expert with experience in loans, business and personal finance, insurance and real estate. Her focus is on demystifying debt to help individuals and business owners take control of their finances. She has also been featured by Investopedia, Los Angeles Times, Money.com and other financial publications.
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If you find any errors on your credit report, be sure to report them to both the credit bureau and the business that made the error as soon as possible. Both parties must correct the information in order for it to change on your credit report and be reflected in your credit score. While eligibility criteria for a cash-out refinance can vary by lender, there are a few common requirements. Afterward, you’ll be given an estimate of how much you might qualify for with a cash-out refinance as well as what you can expect to pay per month and overall. Loan amount - If you're getting a mortgage to buy a new home, you can find this number by subtracting your down payment from the home's price. If you're refinancing, this number will be the outstanding balance on your mortgage.
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Just like acquiring your purchase mortgage, you’ll need to gather your supporting documentation such as your recent pay stubs, W-2s, and bank statements. But you’ll also need details about your existing mortgage, including the remaining loan amount, the number of years left to pay and the interest rate. This information helps you and your lender calculate the best refinance loan option for your financial situation. The offers that appear on this site are from companies that compensate us. But this compensation does not influence the information we publish, or the reviews that you see on this site.
Mortgage calculator terms explained
A cash-out refinance is best for borrowers who need a substantial amount of money and, ideally, can refinance to a lower interest rate. Many homeowners use cash-out funds to do renovations, while other borrowers use the money to consolidate more expensive debt. While you can use the cash for any purpose, it’s best to put it toward furthering your financial goals, rather than a vacation, wedding or other discretionary expense. The larger your down payment, the more likely you are to qualify for lower interest rates. We recommend your down payment be at least 5% of the purchase price. Mortgage refinance rates vary by lenders based on a whole host of different factors.
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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. Mortgage rates started ticking up from historic lows in the second half of 2021 and increased dramatically in 2022 and throughout most of 2023. Contact your lender, your financial advisor, and/or a housing counselor for advice or information related to your specific situation. On mobile devices, tap "Refine Results" to find the field to enter the rate and use the plus and minus signs to select the "Loan term." After doing your research, you’ll be able to more easily identify which lender will work best for you.
Who is a cash-in refinance best for?
The average APR on the 30-year fixed-rate jumbo mortgage refinance is 7.73%. Under "Down payment," enter the dollar amount of your down payment (if you’re buying) or the amount of equity you have (if refinancing). Or instead of entering a dollar amount, enter the down payment percentage in the window to the right. A down payment is the cash you pay upfront for a home, and home equity is the value of the home, minus what you owe. She is a regular contributor to multiple financial publications, and her work has been syndicated nationwide. With a conventional cash-out refinance, you can typically borrow up to 80% of your home’s value—meaning you must maintain at least 20% equity in your home.

When can you refinance a mortgage?
An adjustable rate stays the same for a predetermined length of time and then resets to a new interest rate on scheduled intervals. A 5-year ARM, for instance, offers a fixed interest rate for 5 years and then adjusts each year for the remaining length of the loan. Typically the first fixed period offers a low rate, making it beneficial if you plan to refinance or move before the first rate adjustment. Most home loans require at least 3% of the price of the home as a down payment.
Speaking of green, the slider and the bars above it are green in this scenario (after a short segment of red). Loan-to-value is a calculation frequently used by mortgage companies when qualifying borrowers for a mortgage. It is calculated by dividing the mortgage balance by the home’s current market value. If you’re unsure of the current appraised value of your home, consider what similar homes in your area are selling for, which may be helpful in determining current value. Results include a 1.5% (of loan amount) closing cost default setting. Your current mortgage balance is the amount of your mortgage that you still owe.
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This loan may not be available for all credit types, and not all service providers in the Quicken Loans network offer this or other products with interest-only options. The information that we provide is from companies which Quicken Loans and its partners may receive compensation. This compensation may influence the selection, appearance, and order of appearance on this site.
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Homeowner's insurance is based on the home price, and is expressed as an annual premium. The calculator divides that total by 12 months to adjust your monthly mortgage payment. Average annual premiums usually cost less than 1% of the home price and protect your liability as the property owner and insure against hazards, loss, etc. Your estimated annual property tax is based on the home purchase price.
While ARMs usually provide a lower interest rate initially, they may rise during the latter stages of the loan due to changes in the corresponding financial index. A cash-in refinance is best for homeowners who want to reduce the outstanding principal on their mortgage. This lowers your loan-to-value (LTV) ratio, helping you qualify for a lower interest rate. With a reduced LTV ratio, you might also be able to eliminate private mortgage insurance (PMI). This process replaces your existing mortgage with a new mortgage that has a different interest rate, a different loan term (the time you have to repay) or both. A fixed rate is when your interest rate remains the same for your entire loan term.
For more information about or to do calculations involving mortgages, please visit the Mortgage Calculator.
In a no-closing cost refinance, you won’t pay closing costs upfront. Instead, you’ll finance these fees with the loan (and pay interest on the larger loan amount), or pay a higher interest rate. Typically, experts recommend spending no more than 28% of your gross monthly income on housing expenses. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.
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