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Refinancing your home loan can allow you to save money, adjust your loan terms, or access home equity to achieve your financial goals. However, it’s important to understand how it may affect your finances before you move forward with the process. A mortgage refinance calculator is a useful tool that estimates your potential savings and costs, which can help you determine whether a refinance is the right strategy for your situation.
Key Points
• A mortgage refinance calculator can help homeowners determine how to refinance a mortgage and make informed financial decisions.
• The break-even point is important for figuring out whether the savings from a mortgage refinance will recover the costs within a reasonable timeframe.
• Homeowners should consider the impact that different loan terms will have on their monthly payments.
• Purchasing points can reduce the interest rate from a mortgage refinance; you can use a refinance calculator to assess how it will affect your upfront costs.
• A higher credit score (700 or above) may help you secure an interest rate that significantly lowers your monthly payments.
Nebraska Mortgage Refinance Calculator
Calculator Definitions
• Remaining loan balance: The remaining loan balance is the principal amount left on your current mortgage and impacts how soon you can refinance a mortgage.
• Current/New interest rate: Interest is the percentage of the loan amount charged by the lender. Obtaining a new interest rate that is lower than your current rate can reduce your monthly payments.
• Remaining/New loan term: The remaining loan term is the time left on your current mortgage, while the new loan term is the duration over which you will pay the refinanced loan. Shortening a loan term can save you money on interest but will increase your monthly payments.
• Points: Mortgage points are optional upfront fees that you can pay to reduce your interest rate. Each point costs 1% of the loan amount and can lower your rate by 0.25%.
• Other costs and fees: A mortgage refinance may incur origination fees, appraisal fees, attorney fees, and other closing costs. These costs typically range from 2% to 5% of the new loan amount.
• Monthly payment: Your monthly mortgage payment includes the principal and interest. Use the refinance calculator to compare your current payment with your new estimated payment.
• Total interest: Total interest is the cost paid to the lender over the life of the loan. Compare the total interest of your existing home loan with the projected interest after a mortgage refinance to determine your potential savings.
How to Use the Nebraska Mortgage Refinance Calculator
Enter your current loan information and potential new loan terms into the Nebraska mortgage refinance calculator to estimate your possible savings and costs. The calculator will provide information about your new monthly payments, total interest, and break-even point.
Step 1: Enter Your Remaining Loan Balance
Input your remaining loan balance, the principal amount you have left on your current mortgage.
Step 2: Add Your Current Interest Rate
Enter your current interest rate to compare it with potential new rates. Your interest rate depends on market conditions, your credit history, and the type of mortgage loan you have.
Step 3: Estimate Your New Interest Rate
Type in the new interest rate, determined by comparing different lenders and researching current mortgage rates. Lower rates can reduce monthly payments or total interest paid.
Step 4: Select Your Remaining Loan Term
Enter the amount of time you have left on your current mortgage so the calculator can estimate the total interest you’ll pay if you keep your current loan.
Step 5: Choose a New Loan Term
Select a new loan term to see how this could help you meet your financial goals. Shorter terms can reduce total interest paid but increase monthly payments, while longer terms can lower monthly payments but increase the total interest paid.
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 lowers the interest rate by 0.25%. The mortgage calculator will help you identify whether the benefits of purchasing points outweigh the upfront costs.
Step 7: Estimate Your Other Costs and Fees
Input all other mortgage refinancing costs, such as lender fees, appraisal fees, and title insurance, to estimate your total expenses and see how they may impact your savings.
Step 8: Review Your Break-Even Point
The calculator computes the break-even point by dividing the total closing costs by your monthly savings. Refinancing may be beneficial if you intend to stay in your home for longer than this point.
Benefits of Using a Mortgage Refinance Payment Calculator
Using a mortgage refinance calculator can help you assess whether refinancing aligns with your financial needs and goals. It allows you to compare your current mortgage with a potential new one and shows how different interest rates and loan terms will affect your monthly payments, total interest, and break-even point. Even a small reduction in your interest rate can yield significant savings.
With the calculator, you can also see whether it is possible for you to access home equity with a cash-out refinance or test how switching to a different loan will impact your mortgage payoff. For example, decreasing your term from 30 years to 15 years could reduce the total interest paid over the life of the loan and create long-term savings, while increasing your term could reduce monthly payments and free up funds for other purposes.
What Is the Break-Even Point in Refinancing?
The break-even point is the time it takes to recoup the closing costs of refinancing through your monthly savings. The calculator estimates this by subtracting your estimated new monthly payment from your current mortgage payment, then dividing the total closing costs by this value.
For example, if you are saving $100 a month and your closing costs are $2,500, it will take you 25 months to offset those costs and start seeing savings. If you plan to sell your home before reaching this point, refinancing may not be the right strategy for you. If you don’t see any savings or are getting a negative number, it might make sense to keep your current loan.
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 Nebraska
In Nebraska, a mortgage refinance typically costs 2% to 5% of the new loan amount. Fixed costs include application fees (up to $500), credit reports ($25-$75), appraisals ($600-$2,000, which may be waived in some cases), recording fees ($25-$250), and attorney fees ($500-$1,000+).
Percentage-based costs include origination fees (0.5%-1%), title search and insurance (0.5%-1%), and points (1% of the mortgage amount per point), and mortgage insurance (the cost of which varies depending on the type of mortgage loan you choose). Refinancing may not require certain purchase-related fees, such as title insurance and inspection fees.
Shopping around, negotiating with lenders, and maintaining a strong credit history can help you secure a lower interest rate and better terms. Some lenders offer no-closing-cost refinances, but be aware that these often have increased interest rates to cover the closing costs so may not be more cost-effective.
Before beginning the refinance process, it may be beneficial to minimize your monthly mortgage payment. To do this, try to:
• Build up your credit score to secure a lower interest rate.
• Extend the term of your loan to reduce monthly payments, but remember this will likely cost you more in interest in the long term.
• Appeal your property tax to see if you can lower your annual tax bill if you think you’re paying too much.
• Shop around for a lower homeowners insurance rate by increasing your deductible, bundling policies, or making your home more secure or storm-resistant.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it’s important to assess the potential costs of this decision before you proceed. A home refi calculator can help you estimate your savings, both monthly and over the life of the loan.
Whether your financial goals involve seeing long-term savings, freeing up funds, or accessing your home equity, you should understand the financial impact of changing your home loan. The information the calculator provides, including monthly payments, total interest, and the break-even point after refinancing, can help you evaluate whether proceeding with a mortgage refinance will benefit you in the long-term.
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 Nebraska?
Refinancing your mortgage in Nebraska involves closing costs that range from 2% to 5% of the new loan amount. These can include application fees, credit report fees, appraisal fees, and title search and insurance. Compare rates from multiple lenders to reduce your total expenses.
How much does it cost to refinance a $300,000 mortgage?
The closing costs from refinancing a $300,000 mortgage can range from $6,000 to $15,000, or 2% to 5% of the loan amount. These costs include application fees, appraisal fees, and title insurance. Using a refi calculator can help you estimate your potential costs and savings and determine your break-even point.
Do you have to put 20% down to refinance?
You don’t need to make a 20% down payment, but you are often required to have at least 20% equity in your home to avoid private mortgage insurance.
At what point is it not worth it to refinance?
If the break-even point is too far in the future relative to how long you intend to stay in your home, refinancing might not be worthwhile. Consider your long-term plans, and use a refi mortgage calculator to weigh your financial goals against your estimated break-even point to determine whether a refinance will be beneficial for you.
What month is best to refinance?
The best month to refinance can vary based on interest rates and your financial circumstances. The fall and winter generally offer lower rates due to the housing market slowing, but you should monitor market trends and ensure you are financially stable before proceeding.
Which bank is best for refinancing?
The best bank depends on your financial needs and refinancing goals. Compare interest rates, loan terms, and closing costs, from multiple lenders to find the offer that works best for you. You should also consider their reputation, particularly for customer service.
What credit score do you need for refinancing?
Credit score requirements for mortgage refinancing vary. Most lenders require a score of at least 620 to refinance a conventional loan, but a score of 700 or above can help you secure better rates and terms. Check your credit report to ensure it is free from errors and do what you can to improve your score before applying.
What are the advantages of refinancing your home?
A mortgage refinance can lower your monthly payments or reduce the total interest you’ll pay. It can also allow you to switch mortgage types and change the loan term to suit your financial goals, whether you want to shorten the term to save on interest or increase it to free up funds on a monthly basis. Through a cash-out refinance, you may also be able to access your home equity.
Does refinancing hurt your credit?
Refinancing can temporarily lower your credit score due to a hard inquiry. Making consistent, timely payments on your new mortgage can minimize this impact and ensure your credit score recovers or possibly even improves over time.
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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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