If so, you are in the right place! Get started by entering your personal confirmation number below.
Received an offer from us?
If so, you are in the right place! Get started by entering your personal confirmation number below.
Leaving SoFi Website
You are now leaving the SoFi website and entering a third-party website. SoFi has no control over the content, products or services offered nor the security or privacy of information transmitted to others via their website. We recommend that you review the privacy policy of the site you are entering. SoFi does not guarantee or endorse the products, information or recommendations provided in any third party website.
Refinancing your home loan can help you manage your finances effectively and achieve significant savings, and a mortgage refinance calculator can help you make an informed decision about whether refinancing is the right move for you. This tool estimates your prospective monthly payments, the total interest you might pay over the duration of the loan, and your break-even point. Remember to consider the type of mortgage loan you currently have and the options available when refinancing, as this can impact the savings and benefits you might achieve.
Key Points
• Using an Arkansas mortgage refinance calculator can help you make an informed decision by estimating potential savings, monthly payments, and the break-even point.
• Refinancing is most beneficial if current mortgage rates are significantly lower than your existing rate.
• Refinancing costs typically range from 2% to 5% of the new home loan amount, including origination, appraisal, and attorney fees.
• Purchasing mortgage points can lower your interest rate, but it requires an upfront payment of 1% of the loan amount per point.
• The break-even point, which you can estimate using a refi calculator, helps determine when the savings from refinancing will outweigh the associated costs.
Arkansas Mortgage Refinance Calculator
Calculator Definitions
• Remaining loan balance: The remaining loan balance is the principal amount outstanding on your existing home loan, and this number affects how soon you can refinance a mortgage.
• Current/new interest rate: Interest is the percentage of the loan amount charged by the lender. A lower interest rate can reduce your monthly payments and total interest paid over the duration of the loan.
• Remaining/new loan term: The remaining loan term is the number of months left on your current mortgage, and the new loan term is the duration over which you’ll repay the refinanced loan. A shorter term can lower the total interest but increase your monthly payments.
• Points: Mortgage points are upfront fees paid to lower your interest rate. Each point costs 1% of the loan amount and can reduce the rate by 0.25%.
• Other costs and fees: Other costs associated with refinancing include origination, appraisal, and attorney fees. These typically range from 2% to 5% of the new loan amount.
• Monthly payment: Your monthly mortgage payment includes the principal and interest. It may also cover homeowners insurance and property taxes. Comparing your current and estimated new payments helps assess potential savings.
• Total interest: Total interest is the cumulative cost you pay to the lender over the duration of the loan, excluding the principal. Comparing total interest for your current and proposed loans helps determine long-term savings.
How to Use the Arkansas Mortgage Refinance Calculator
Enter your current loan details and proposed refinance terms into the Arkansas refi mortgage calculator to estimate potential savings.
Step 1: Enter Your Remaining Loan Balance
Add the precise remaining loan balance into the home refi calculator to ensure accurate savings estimates.
Step 2: Add Your Current Interest Rate
Enter your current interest rate, which you can find on your most recent mortgage statement or by talking to your lender.
Step 3: Estimate Your New Interest Rate
Add the estimated new interest rate to see potential savings from a lower rate.
Step 4: Select Your Remaining Loan Term
Choose your remaining loan term to see how it affects your monthly payments and total interest.
Step 5: Choose a New Loan Term
Select a new loan term to explore different payment and interest scenarios. A longer term can lower monthly payments, while a shorter term can reduce total interest paid over the life of the loan.
Step 6: Enter Any Points You Intend to Purchase
Add any points you plan to purchase. Each point costs 1% of the loan amount and can lower your interest rate by 0.25%.
Step 7: Estimate Your Other Costs and Fees
Enter other costs and fees, such as origination, credit report, home appraisal, and attorney fees, to get a realistic estimate of total refinancing expenses.
Step 8: Review Your Break-Even Point
Review your break-even point to determine when refinancing becomes financially beneficial.
Benefits of Using a Mortgage Refinance Payment Calculator
Using a mortgage refinance calculator can help you evaluate whether refinancing can lower your monthly payment or interest rate, potentially saving you money in the long term. It provides a comparison of your current and proposed loans, showing how different interest rates and loan terms can affect your monthly payments and total interest. A lower monthly payment can free up cash for other financial goals, while lower total interest can significantly reduce the cost of your mortgage over the duration of the loan. Even a small reduction in your interest rate can lead to substantial savings, especially for larger mortgages.
By testing different interest rates and loan terms, the calculator can help you determine how to refinance a mortgage.
What Is the Break-Even Point in Refinancing?
The break-even point is the time it takes to recoup the closing costs associated with refinancing through your monthly savings. To compute your break-even point, the calculator subtracts your estimated new monthly payment from your current payment, then divides the total closing costs by the monthly savings. For example, if your closing costs total $5,000 and you save $200 per month, your break-even point would be 25 months. If you plan to move or sell your home before reaching this point, refinancing may not be beneficial. The calculator can help you estimate your break-even point and assess the long-term financial impact of refinancing.
Current mortgage rates by state.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Typical Closing Costs for a Refinance in Arkansas
Mortgage refinancing costs in Arkansas typically range from 2% to 5% of the new loan amount. These costs include loan application fees (up to $500), credit report fees ($25–$75), home appraisal fees ($600–$2,000), recording fees ($25–$250), and attorney fees ($500–$1,000+). Percentage-based costs often include loan origination fees (0.5%–1% of the purchase price) and title search and insurance (0.5%–1% of the purchase price). Some fees, like title insurance and inspection fees, may not be required for refinances.
To lower your costs, negotiate with multiple lenders, and aim to maintain a strong credit score, ideally 740 or above. Some lenders offer a no-closing-cost refinance, but these are not necessarily more cost-effective. Be wary of hidden fees, such as prepayment penalties.
You can minimize your monthly mortgage payment before starting the refinancing process. Consider the following:
• Build up your credit score to secure lower interest rates.
• Extend the term of your loan to lower monthly payments, although be mindful that this could increase the total interest you pay.
• Appeal your property tax to potentially reduce your monthly payment.
• Shop for a lower homeowners insurance rate by increasing your deductible or bundling policies.
The Takeaway
Refinancing your mortgage can help you manage your finances, but it requires careful consideration. A mortgage refinance calculator helps estimate potential savings, monthly payments, and the total cost of refinancing. By providing your current and proposed loan details, you can determine whether refinancing aligns with your financial goals.
Whether you’re looking to lower your interest rate, change your loan term, or access home equity, the calculator provides the clarity needed to make an informed decision. Always weigh the benefits against the costs, and consider consulting a financial advisor to ensure that refinancing is the right move for you.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
How much does it cost to refinance your mortgage in Arkansas?
Mortgage refinancing costs in Arkansas typically range from 2% to 5% of the new loan amount. They include loan application fees, credit report fees, home appraisal fees, and title insurance costs. Using an Arkansas refinance calculator can help you estimate these costs and determine the break-even point.
How much does it cost to refinance a $250,000 mortgage?
Refinancing a $250,000 mortgage typically incurs costs ranging from $5,000 to $12,500. These costs include loan application fees, credit report fees, home appraisal fees, and title insurance. A refinance calculator can help you estimate these costs and calculate potential savings.
Do you have to put 20% down to refinance?
You don’t need to make a 20% down payment when refinancing. However, having at least 20% equity in your home can help you avoid private mortgage insurance (PMI). A down payment calculator can help you determine your current equity and whether you qualify for refinancing without PMI.
At what point is it not worth it to refinance?
The break-even point is the time it takes for the savings from a lower interest rate to cover the upfront refinancing costs. If you plan to move or sell your home before reaching this point, refinancing may not be beneficial. A refinance calculator can help you estimate your break-even point and assess the long-term financial impact.
What month is best to refinance?
The best month to refinance depends on prevailing mortgage rates and your financial circumstances. Historically, rates are lower in fall and winter due to decreased demand. However, broader economic conditions also influence rates. A refinance calculator can help you estimate potential savings and determine the most opportune time to refinance.
Which bank is best for refinancing?
Choosing the best bank for refinancing depends on your specific financial needs, and it involves comparing rates, fees, and terms from multiple lenders. Start with your current lender, explore online lenders, and consider credit unions. Gather your financial information and use a mortgage refinance calculator to compare different lenders and estimate your new monthly payments and total costs.
What credit score do you need for refinancing?
Most lenders require a minimum credit score of 620 for refinancing approval. A higher credit score can lead to better interest rates and lower fees. Check your credit report for errors and take steps to improve your score before applying.
What are the advantages of refinancing your home?
Refinancing can provide lower monthly payments, reduced interest rates, and the ability to access home equity. A lower interest rate decreases monthly payments and total interest paid over the duration of the loan. A cash-out refinance allows you to borrow more than your current mortgage balance. However, weigh these benefits against the costs, such as closing fees, which can range from 2% to 5% of the loan amount. A mortgage refinance calculator can help you estimate these savings and determine whether refinancing aligns with your financial goals.
Does refinancing hurt your credit?
Refinancing can temporarily lower your credit score due to a hard inquiry and the opening of a new account. However, the long-term effects are generally minimal. A hard inquiry typically results in a small, temporary dip in your credit score. The new account can affect your credit utilization and average account age, but these factors tend to have a minor impact. If you plan to stay in your home for a significant period, the financial benefits of refinancing often outweigh the short-term credit impact. To minimize negative effects, consider submitting multiple applications within a short timeframe.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
SOHL-Q425-068
