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.
If you’re aiming to lower your monthly mortgage payments, shorten your loan term for faster ownership of your home, or access your home equity for other investments or needs, a mortgage refinance may be the answer. The Indiana mortgage refinance calculator can be a valuable tool in your decision-making process. This guide will explain how to use the refi calculator to estimate the mortgage refinancing costs and benefits so you can determine if now is the right time to switch to a new home loan.
Key Points
• Using the Indiana mortgage refinance calculator can help homeowners estimate potential savings and costs, making it easier to decide if refinancing aligns with their financial goals.
• The break-even point, calculated using a home refi calculator, will show you how long it will take you to recover the up-front costs of a mortgage refinance from the amount you will save each month.
• Homeowners should consider the impact of extending or shortening the home loan term, as this can significantly affect monthly payments and total interest paid.
• Purchasing mortgage points can lower the interest rate, but the long-term benefits should be carefully evaluated.
• Improving your credit score can lead to better interest rates and lower monthly payments when refinancing.
• Other costs, such as origination fees, appraisal fees, and attorney fees, should be included in the mortgage refinance calculator to get a complete picture of the refinancing expenses.
Indiana Mortgage Refinance Calculator
Calculator Definitions
• Remaining loan balance: The remaining loan balance is the principal amount you still owe on your current home loan.
• Current/New interest rate: The interest rate is the percentage of the loan amount charged by the lender. Comparing the interest rate on your mortgage with current mortgage rates will help you determine if refinancing could reduce your monthly payments or the overall interest you pay.
• Remaining/New loan term: The remaining loan term is the number of months left on your current mortgage. The new loan term sets a fresh repayment schedule, affecting your monthly payments and total interest.
• Points: Mortgage points are fees paid upfront to lower your interest rate. Each point costs 1% of the loan amount and can reduce your overall interest rate by .25%.
• Other costs and fees: Other costs and fees include origination fees, appraisal fees, and attorney fees. These typically range from 2% to 5% of the loan amount and can significantly impact your refinancing decision.
• Monthly payment: Your monthly payment includes the principal and interest on your home loan. A refinance calculator helps you compare your current payment with the estimated payment after refinancing.
• Total interest: Total interest is the cost you pay to the lender over the life of the loan, excluding the principal amount. Comparing the total interest for your current and new loans helps you determine if refinancing is financially beneficial.
How to Use the Indiana Mortgage Refinance Calculator
If you’ve owned your home for a while, you might be considering switching to a different type of mortgage loan to lock in a lower interest rate or shorten your mortgage term. The refi mortgage calculator can help you assess these options and determine how to refinance a mortgage in the way that benefits you most.
Step 1: Enter Your Remaining Loan Balance
Start by entering your remaining loan balance into the refi mortgage calculator. This represents the principal amount you still owe on your existing home loan and affects how soon you can refinance a mortgage.
Step 2: Add Your Current Interest Rate
Enter the interest rate on your current mortgage, which you can find on your mortgage statement or by contacting your lender. The calculator will compare this rate against your estimated new rate.
Step 3: Estimate Your New Interest Rate
Estimate your new interest rate by checking the current average rates to get a realistic idea of what you might qualify for. A lower interest rate can reduce your monthly payments and total interest paid.
Step 4: Select Your Remaining Loan Term
Select your remaining loan term in the refi mortgage calculator. This represents the number of months left on your current mortgage.
Step 5: Choose a New Loan Term
Selecting each of the new loan terms allows you to explore different repayment scenarios to find the best one for your financial situation. A shorter term can save you thousands in total interest, while a longer term can lower monthly payments.
Step 6: Enter Any Points You Intend to Purchase
Enter the number of mortgage points you plan to purchase. Points can lower your interest rate, but you need to pay the upfront costs.
Step 7: Estimate Your Other Costs and Fees
Estimate your other costs and fees, such as lender fees, credit report fees, and appraisal fees. Inputting these helps you determine the total expenses associated with refinancing.
Step 8: Calculate Your Break-Even Point
Calculate your break-even point to determine when the savings from a lower interest rate will cover the closing costs. If you expect to sell your home before the break-even point, refinancing may not be worthwhile.
Benefits of Using a Mortgage Refinance Payment Calculator
Refinancing can potentially lower your monthly housing expenses or allow you to access home equity with a cash-out refinance. Using a refinance calculator helps you evaluate if changing your mortgage can save you money or will cost you too much.
By inputting different rates and terms, you can see how they might impact your monthly payment and total interest. Lower payments offer immediate relief, while lower interest saves long-term. Small interest rate reductions on large mortgages can yield significant savings. Refinancing from a 30-year to a 15-year loan accelerates mortgage payoff and reduces total interest. If you have an adjustable-rate mortgage and worry about rate increases, you can use the refinance calculator to determine if a fixed-rate mortgage would suit your situation.
What Is the Break-Even Point in Refinancing?
The break-even point is the time it takes to recoup the closing costs on your refinance through monthly savings. To find this manually, you subtract your estimated new monthly payment from your current mortgage payment, then divide the closing costs by the monthly savings. For example, if refinancing saves you $100 a month and your closing costs are $2,500, it would take 25 months to break even. If you plan to sell your home within two years, refinancing may not be beneficial. The calculator will automatically compute your break-even point for you.
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 Indiana
Refinancing in Indiana incurs closing costs, typically 2%–5% of the loan. These include fixed fees, including the application (up to $500), credit report ($25–$75), appraisal ($600–$2,000), recording ($25–$250), and attorney fees ($500–$1,000+). Percentage-based costs cover loan origination (0.5%–1%), title search/insurance (0.5%–1%), and mortgage points. Some fees, such as title insurance, might be waived with certain types of loans.
To cut costs, compare lenders, negotiate, maintain a 740+ credit score, and watch for prepayment fees. Note that refinancing a jumbo loan can have higher costs, while no-closing-cost refinancing may have a higher interest rate.
Tips on Reducing Your Mortgage Refinance Payment
There are things you can do before you refinance that will reduce your new monthly payments.
• Increasing your credit score can give you access to a lower interest rate.
• Extending the term of your loan will decrease your monthly payments but could increase the total interest you pay over the life of the loan.
• Appealing your property tax assessment could lower your tax bill.
• Opting for a higher deductible on your homeowner’s insurance or bundling policies can reduce your monthly premiums.
The Takeaway
Refinancing your home loan can be a strategic financial move. However, failing to evaluate the associated costs and benefits can be an expensive mistake. A refinance calculator helps you estimate the potential savings and break-even point, allowing you to make a decision that aligns with your long-term financial goals. Calculate the total cost of refinancing, including the closing costs and potential increase in overall interest payments, and assess the impact of different loan terms and interest rates to make an informed decision.
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 home loan in Indiana?
The cost to refinance a home loan in Indiana typically ranges from 2% to 5% of the new loan amount. These costs generally include lender fees, credit report fees, appraisal fees, title search and insurance, and escrow costs. If the savings generated by the refinance offset these costs, then changing your mortgage could be a good idea.
How much does it cost to refinance a $300,000 home loan?
Refinancing a $300,000 home loan can cost between $6,000 and $15,000, which is 2% to 5% of the new loan amount. A mortgage refinance calculator can help you estimate these costs and determine if they outweigh your potential savings.
Do you have to put 20% down to refinance?
You don’t need to put 20% down to refinance, but you must meet a minimum loan-to-value ratio. Most lenders require at least 20% equity to avoid private mortgage insurance. If you have less than 20% equity, you may qualify for programs like FHA Streamline, Fannie Mae RefiNow, or Freddie Mac Refi Possible, which have more flexible requirements.
At what point is it not worth it to refinance?
If your break-even point is too far in the future, refinancing may not be worth it. For example, if closing costs are $5,000 and you save $100 per month, it would take 50 months to recoup the costs. If you expect to move before the break-even point, a mortgage refinance would not be advantageous.
What month is best to refinance your home loan?
Historically, mortgage rates tend to be lower in the fall and winter. Monitor rates throughout the year and consider your long-term financial goals before deciding to refinance.
Which bank is best for refinancing your home loan?
Choosing the best bank for refinancing requires comparing rates, terms, and fees from multiple lenders to find a lender who best suits your financial goals and refinancing needs. Consider lenders known for transparency and excellent customer service. Gather loan estimates and use a refinance calculator to compare total costs and potential savings.
What credit score do you need for refinancing?
A minimum credit score of 620 is generally required for conventional loans. A score of 700 or above often secures the best rates and terms.
What are the advantages of refinancing your home?
The variety of benefits refinancing can offer includes lower interest rates and monthly payments and the increased stability of switching from an adjustable-rate loan to a fixed-rate one. A cash-out refinance allows you to borrow more than you currently owe on your mortgage so that you can use the extra cash for various needs.
Does refinancing hurt your credit?
Refinancing involves a hard inquiry on your credit report, which can temporarily lower your score by a few points. However, the impact is usually minimal and short-lived. Avoid multiple hard inquiries within a short period to minimize the effect.
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-Q425-078
