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Refinancing your home loan in Missouri offers the potential to save you a significant amount of money over the life of your mortgage. Whether you’re aiming to lower your monthly payments for increased cash flow, shorten the overall loan term to pay it off quicker and build equity faster, or gain access to your home equity for other investments or pressing needs, a Missouri mortgage refinance calculator can help you assess your options.
Keep reading for more on refinancing your mortgage in Missouri, whether it makes sense for your situation, and how to use the Missouri mortgage refi calculator.
Key Points
• A Missouri mortgage refinance calculator helps estimate potential savings and costs, comparing your current loan to a potential new one.
• The break-even point is when the savings from refinancing will outweigh the associated costs.
• Current market conditions, including mortgage rates, significantly influence the benefits of refinancing your existing mortgage.
• Paying mortgage points can reduce your interest rate and monthly payments, but it requires careful consideration of upfront costs versus long-term savings.
• Extending the loan term can lower monthly payments but increases the total interest paid over the life of the loan, so it’s important to weigh the trade-offs.
Missouri Mortgage Refinance Calculator
Calculator Definitions
• Remaining loan balance: The remaining loan balance is the principal amount you still owe on your home loan.
• Current/New interest rate: Interest is the cost of borrowing money, expressed as a percentage of the loan amount. The difference between your current interest rate and a potential new one, even a slight one, can significantly impact both your monthly payments and your overall savings over the duration of the loan.
• Remaining/New loan term: The remaining loan term is the number of months left on your current mortgage. The new loan term is the total repayment period for the new loan. Shorter terms mean higher monthly payments but lower total interest costs.
• Points: Mortgage points are optional upfront fees paid to reduce your interest rate. Each point costs 1% of the loan amount and can lower the rate by about 0.25%.
• Other costs and fees: Refinancing costs include lender, appraisal, and attorney fees, typically ranging from 2% to 5% of the loan amount.
• Monthly payment: Your monthly payment includes the principal and interest on your mortgage. A refinance calculator can estimate your new monthly payment and help you compare it with your current one. Keep in mind that lower monthly payments alone don’t indicate whether a refinance will save you money over the long term.
• Total interest: Total interest is the cost you pay to the lender over the life of the mortgage. Comparing the total interest of your current and potential refinance loans helps determine the financial benefits.
How to Use the Missouri Mortgage Refinance Calculator
A Missouri mortgage refi calculator estimates savings and costs, helping you decide if refinancing is worth it. Here’s a step-by-step guide on how to use the calculator.
Step 1: Enter Your Remaining Loan Balance
Begin by entering your remaining loan balance into the calculator. This is the principal amount you still owe on your existing home loan.
Step 2: Add Your Current Interest Rate
Enter your current interest rate to understand your current monthly payments and total interest. Compare this rate with current mortgage rates to determine if refinancing can save you money.
Step 3: Estimate Your New Interest Rate
Estimate your new interest rate based on your credit score, market conditions. and the type of mortgage loan. This helps you understand the potential reduction in monthly payments and total interest paid.
Step 4: Select Your Remaining Loan Term
Input the number of years left on your current mortgage into the refi calculator. This estimates the total interest you’d pay if you kept your current mortgage.
Step 5: Choose a New Loan Term
Choose a new loan term to see how it affects your monthly payments and total interest. Shorter terms mean higher payments but lower interest costs.
Step 6: Enter Any Points You Intend to Purchase
Enter any mortgage points you plan to purchase. Points can lower your interest rate, but they come with an upfront cost. The refi mortgage calculator helps assess if purchasing points is beneficial for your financial situation.
Step 7: Estimate Your Other Costs and Fees
Estimate other costs and fees, such as lender fees, appraisal fees, and title insurance. These costs can range from 2% to 5% of the loan amount.
Step 8: Review Your Break-Even Point
Calculate your break-even point to determine when the savings from refinancing will offset the closing costs. To do this, divide the total closing costs by the amount of your monthly savings.
Benefits of Using a Mortgage Refinance Payment Calculator
Using a mortgage refi calculator can help you evaluate whether a mortgage refinance can lower your monthly payment or interest rate, potentially saving you a significant amount of money. The calculator provides a detailed comparison of your current and proposed loans, showing how different interest rates and loan terms can impact your monthly costs and total interest paid. For example, a 0.50% reduction in your interest rate could result in substantial savings, especially for larger mortgages.
The calculator can also help you determine if refinancing might not be beneficial, such as if the closing costs outweigh the savings. Exploring various scenarios helps you see if refinancing will actually save you money and if it’s worth it.
The break-even point is the time it takes for the savings from a refinance to offset the upfront closing costs. To calculate this, subtract your estimated monthly payment after refinancing from your current mortgage payment, then divide the closing costs by the monthly savings.
For example, if refinancing a mortgage saves you $100 a month and your closing costs are $2,500, it would take 25 months to reach the break-even point. If you plan to stay in your home longer than this, refinancing could be a beneficial move.
The exception to this rule is a cash-out refinance, where you’re tapping into your home equity rather than looking to save money on interest.
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 Missouri
Mortgage refinancing costs typically range from 2% to 5% of the new loan amount. These costs include lender, credit report, home appraisal, recording, and attorney fees. Some fees, like title insurance and inspection, may not be required for refinances.
For a $500,000 loan, for example, closing costs could fall between $10,000 and $25,000. For a $300,000 loan, closing costs could range from $6,000 to $15,000. The smaller the loan, the less you’ll pay in closing costs. To lower costs, shop around and negotiate with multiple lenders, and maintain a strong credit score.
While “no-closing-cost refinance” promotions are eye-catching, they’re a bit misleading, since many lenders will increase your interest rate to cover the cost of closing fees.
There are ways to reduce your mortgage refinance payment, including:
• Building up your credit score to secure better interest rates and terms.
• Extending the term of your loan to lower monthly payments, though this increases total interest paid.
• Adjusting your homeowners insurance policy to decrease your monthly premium.
• Shopping around for the best rates and terms to find the most competitive offers.
The Takeaway
Refinancing your mortgage may help you save money, but it requires careful consideration. A Missouri mortgage refi calculator helps estimate potential savings and costs, ensuring your decision aligns with your financial goals. Whether you aim to lower monthly payments, shorten the loan term, or access home equity, the calculator provides a clear financial impact.
If you plan to stay in your home long-term and can secure a better rate, refinancing might be a smart move. However, if the costs outweigh the benefits, explore other options like making extra payments or recasting your loan.
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 Missouri?
Refinancing your mortgage in Missouri typically costs 2% to 5% of the new loan amount. These costs include lender, credit report, appraisal, attorney, and escrow fees.
How much does it cost to refinance a $300,000 mortgage?
Refinancing a $300,000 mortgage typically costs between $6,000 and $15,000 in closing costs, or 2% to 5% of the loan amount. Common fixed costs include loan application, credit report, and attorney fees.
Do you have to put 20% down to refinance?
When refinancing, you typically need at least 20% equity in your home to qualify, but there’s no down payment. The requirement varies based on the type of refinance and your lender’s policies.
At what point is it not worth it to refinance?
Refinancing is not worth it if you plan to move within a few years or if the interest rate reduction is minimal. Calculate the break-even point to determine if the savings justify the costs. For example, if your closing costs are $6,000 and you save $200 per month, it would take 30 months to break even.
What month is best to refinance?
The best time to refinance is when interest rates are low and you are financially ready. Monitor rate trends and use a Missouri mortgage refinance calculator to determine what your savings would be if you refinanced.
Which bank is best for refinancing?
The best bank for refinancing depends on your needs and financial situation. Consider interest rates, loan terms, and closing costs. Shop around and compare rates from multiple banks to get the best loan for your situation.
What credit score do you need for refinancing?
Most lenders require a minimum credit score of 620 for conventional loans. A higher score can secure better interest rates and terms. Check your credit report for errors and work on building your score before applying.
What are the advantages of refinancing your home?
Refinancing offers several advantages, including securing a lower interest rate, reducing monthly payments, and switching from an adjustable-rate to a fixed-rate mortgage. A cash-out refinance allows accessing home equity for other expenses. Weigh these benefits against closing costs and consider your long-term 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 benefits often outweigh this short-term impact. Shop around and gather multiple quotes within a short period to minimize the effect on your credit score.
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*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.
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