This helpful tool can help you figure out your best refinance strategy
As property values increase in many parts of the country while interest rates remain near their historic lows, many homeowners can accomplish a number of important financial goals by refinancing their home loan. The question becomes how to best tailor a refinance to meet your financial needs, and in this regard a little-used financial tool — the mortgage refinance calculator - can be a huge help.
It’s no secret that homeowners have a multitude of refinance options nowadays because many homes have appreciated in value. The most recent S&P Case-Shiller Home Price Index showed that home prices across the country increased 6.2% in September, the fastest pace in over three years. Even cities like Denver, which is located in the middle of the country, are experiencing rapid gains. For example, Denver’s home prices increased 7.2% in September (more than the national average), and have more than doubled since 2000, making the Rocky Mountain capitol the 7th hottest real estate market in the country today.
Many homeowners in states like Colorado can not only refinance and lower the interest rate on their mortgage but they can also access some of the equity in their home (or get “cash-out”) at the same time. Many families are finding out that accessing their home equity in order to make home renovations or consolidate high interest rate debt such as credit cards, or even finance a child’s college tuition can be a life-changing event.
So how do you figure out what type of refinance you should choose or how much money you should borrow, or how much money you can save each month by refinancing? The first step is to do a little homework of your own by utilizing a refinance calculator. A mortgage refinance calculator is easy to use and allows you to plug in a variety of different numbers to help you get an idea of what strategy makes the most sense for you, try our simple mortgage Refinance Calculator. Even working with a mortgage refinance calculator for 5-10 minutes can pay big dividends.
Once you have a refinance strategy in mind, you should contact a Loan Officer to give you an estimate of current interest rates, the types of home loans that are available and any closing costs. This is a great way to maximize your time because while your Loan Officer can help you understand all of the lending options that are available to you as well as their costs, only you know your true financial situation and what specific financial goals you want to accomplish.
It’s always a great time to reassess your financial situation as well as your household budget for the coming year. In doing so, it makes sense to review your mortgage using a mortgage refinance calculator and look at the various ways that refinancing can benefit you. Given the low interest rates and rising property values in many parts of the country, refinancing your mortgage can be a tremendous way to save money and accomplish your financial goals at the same time, as opposed to depleting other financial assets, or worse, taking out a risky home equity line of credit loan.
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