Mortgage Refinance Calculator
Calculate your new mortgage amount
Mortgage Refinance Calculator
If you’re considering refinancing your mortgage, you’re not alone. Many homeowners in Canada looking to take advantage of a mortgage refinance to reduce their monthly payments, consolidate debt, or access equity in their home. At Freedom Capital, we offer a mortgage refinance calculator to help you determine if refinancing is the right choice for you. Here’s everything you need to know about using our calculator and the benefits of mortgage refinancing.
What is a mortgage refinance?
A mortgage refinance is the process of replacing your current mortgage with a new one, usually with more favorable terms. This can include a lower interest rate, a shorter or longer loan term, or changing from an adjustable-rate mortgage to a fixed-rate mortgage. By refinancing, you can potentially lower your monthly payments, reduce the amount of interest you pay over the life of your loan, or access the equity in your home.
What are the benefits of refinancing my mortgage?
There are several potential benefits to refinancing your mortgage, including:
- Lowering your interest rate: If interest rates have decreased since you obtained your original mortgage, refinancing can help you secure a lower rate and save money on interest over the life of your loan.
- Reducing your monthly payments: If you’re struggling to make your monthly mortgage payments, refinancing can help you reduce your monthly payments by extending your loan term or lowering your interest rate.
- Consolidating debt: Refinancing can be a way to consolidate high-interest debt, such as credit card debt, into a lower interest mortgage payment.
- Accessing equity in your home: If you’ve built up equity in your home, refinancing can allow you to access that equity and use the funds for home improvements, college tuition, or other expenses.
How does the Freedom Capital mortgage refinance calculator work?
Our mortgage refinance calculator is a simple tool that allows you to input information about your current mortgage, your new mortgage, and any closing costs or fees associated with refinancing. Based on this information, the calculator will generate an estimate of your monthly payments, how much you could save in interest, and the total cost of refinancing.
To use the calculator, you’ll need to know:
- The current balance on your mortgage
- The current interest rate on your mortgage
- The number of years remaining on your mortgage
- The new interest rate you’re considering
- The term of the new mortgage you’re considering
- The estimated closing costs and fees associated with refinancing
Once you’ve entered this information, the calculator will generate an estimate of your monthly payments, the total amount of interest you’ll pay over the life of the loan, and the total cost of refinancing. This information can help you determine if refinancing is the right choice for you.
Factors To Consider Before Refinancing A Mortgage
While refinancing can be a great way to save money or access equity in your home, it’s important to carefully consider your options before making a decision. Here are some factors to consider:
Your credit score: If your credit score has improved since you obtained your original mortgage, you may be able to qualify for a lower interest rate and save money on interest over the life of your loan.
The length of your remaining mortgage term: If you’re close to paying off your mortgage, refinancing may not be worth the cost, as you’ll be extending the length of your loan and paying more in interest over time.
The fees associated with refinancing: While refinancing can save you money in the long run, it’s important to consider the upfront costs associated with refinancing, such as closing costs, appraisal fees, and other fees. Make sure you understand the total cost of refinancing and weigh it against the potential savings before making a decision.
Your current financial situation: Refinancing can be a good option if you’re struggling to make your monthly mortgage payments or if you have high-interest debt that you want to consolidate. However, if you’re planning to move in the near future or if your income is uncertain, refinancing may not be the best choice for you.
It’s important to carefully evaluate your options and consider your individual circumstances before deciding whether to refinance your mortgage.