If you want to lower your monthly payment, take out cash for a home renovation project or consolidate household debts, refinancing your mortgage might be the solution for you. There are many different reasons for refinancing your mortgage. Some homeowners want to change the loan term so that they make smaller payments on the loan over a shorter period of time.
Others are interested in a change to a shorter term loan, which typically includes a shorter term with larger payments so that you can own your home faster. Whether you want to refinance for easier payments or get access to cash to pay off other debts, our Mortgage Refinance Calculator can help you see how your monthly payment and interest rate could change based on refinancing the loan.
A Smart Approach to Refinancing a Mortgage
Before contacting your mortgage lender, take a look at your current financial situation. Have you been making timely payments on your current mortgage and other debts? You are more likely to qualify for a lower interest rate if your credit score has increased thanks to on-time payments and having other credit accounts in good standing.
It’s also important to take a look at the current interest rate, since refinancing when mortgage rates are low can have a big impact on your overall savings. If you are currently locked into a high-rate loan, then it might be worth exploring what you could be eligible for in mortgage refinance.
Other Mortgage Refinancing Considerations:
- The mortgage refinancing process can take time and isn’t a “fast cash” solution.
- You must be able to provide financial statements, pay stubs and other supporting documentation when you apply.
- Cash-out refinancing is typically used to pay off debts, complete home improvements or to maximize retirement investment.
Ready to see how much you could save by refinancing your mortgage?
Calculate the potential loan amount and monthly payment with the TDECU Mortgage Refinancing calculator.
Our financial calculators are provided as a free service to our members. The information supplied by these calculators is from various sources based on calculations we believe to be reliable (but are not guaranteed, explicit or implied) regarding their accuracy or applicability to your specific circumstances. All examples are hypothetical and are for illustrative purposes, and are not intended to provide investment advice. TDECU does not accept any liability for loss or damage whatsoever, which may be attributable to the reliance on and use of the calculators. Use of any calculator constitutes acceptance of the terms of this agreement. TDECU recommends you to find a qualified professional for advice with regard to your personal finance issues.