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 mortgage can offer significant benefits but also comes with costs. Understanding both can help you make an informed decision about changing your home loan. A Rhode Island mortgage refinance calculator estimates potential savings and expenses to help you determine how you could achieve your financial goals through refinancing. Whether you’re looking to reduce your monthly payments or total interest, switch to a different loan type, or access home equity, the calculator provides you with valuable insights.
Key Points
• A Rhode Island mortgage refinance calculator can help homeowners determine whether refinancing aligns with their financial goals.
• The calculator can estimate potential monthly payments, total interest, and the break-even point, helping you decide if refinancing will be financially beneficial.
• Decreasing your loan term can increase your monthly payments but significantly reduce the total interest paid over the life of the loan, while extending the loan term has the opposite effect.
• Improving your credit score may allow you to secure a lower interest rate and potentially save you thousands of dollars in interest.
• Mortgage refinancing costs are typically 2% to 5% of the loan amount and should be factored into your decision.
Rhode Island Mortgage Refinance Calculator
Calculator Definitions
• Remaining loan balance: The remaining loan balance is the principal amount you still owe on your mortgage. This value affects how soon you can refinance a mortgage and allows the calculator to estimate the impact of refinancing.
• Current/New interest rate: The interest rate is the percentage of the loan amount charged by the lender for borrowing the money. A new, lower interest rate can reduce monthly payments and total interest paid over the life 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 reduce the total interest you pay but increases monthly payments, while a longer term does the opposite.
• Points: Mortgage points are optional upfront fees that lower your interest rate. Each point costs 1% of the loan amount and can reduce the rate by 0.25%.
• Other costs and fees: Refinancing involves various costs, including origination, appraisal, and attorney fees. These can range from 2% to 5% of the new loan amount.
• Monthly payment: Your monthly payment includes the principal and interest of your mortgage. You can use a refinance calculator to compare your current and estimated new monthly payments.
• Total interest: Total interest is the cost you pay to the lender over the life of the mortgage, excluding the principal. Comparing the total interest you’ll pay with your current home loan to the estimated total after a mortgage refinance can help you see potential long-term savings.
How to Use the Rhode Island Mortgage Refinance Calculator
To use the Rhode Island mortgage refinance calculator, input the details of your current loan and potential refinance terms. The calculator will estimate new monthly payments, total interest, and the break-even point, to help you evaluate the benefits of refinancing against the costs.
Step 1: Enter Your Remaining Loan Balance
Enter your remaining home loan balance. This is the principal amount you still owe on your current mortgage.
Step 2: Add Your Current Interest Rate
Input your current interest rate. You can find this on your latest mortgage statement or by contacting your lender.
Step 3: Estimate Your New Interest Rate
Estimate your new interest rate by comparing offers from different lenders or checking online for current mortgage rates available in your area. A lower rate can reduce your monthly payments or total interest paid, especially if rates have dropped since you purchased your home.
Step 4: Select Your Remaining Loan Term
Input the number of years left on your current mortgage so the home refi calculator can estimate the total interest you’ll pay if you keep your current loan and do not refinance.
Step 5: Choose a New Loan Term
Choose a new loan term to determine how you can meet your financial goals. A longer term can lower monthly payments, while a shorter term can save on total interest paid over the duration of the loan.
Step 6: Enter Any Points You Intend to Purchase
Enter any discount points you plan to purchase. Each point costs 1% of the loan amount and lowers the interest rate by 0.25%. Use the refi mortgage calculator to identify whether purchasing points will benefit you.
Step 7: Estimate Your Other Costs and Fees
Estimate other costs and fees, such as origination, credit report, home appraisal, and attorney fees. These costs can range from 2% to 5% of the loan amount. Enter these into the calculator to see the impact on your potential savings.
Step 8: Review Your Break-Even Point
Calculate your break-even point, which is the number of months it will take for the total savings from the new loan to equal the total cost of refinancing. If you plan to stay in your home longer than this point, refinancing may be financially beneficial.
Benefits of Using a Mortgage Refinance Payment Calculator
A mortgage refinance calculator can help you determine if refinancing can lower your monthly payment or interest rate and save you money. It compares your existing and potential new mortgage to show how different interest rates and loan terms could affect your monthly payment and total interest.
You can input offers from different lenders to determine how to refinance a mortgage to best suit your financial situation. Securing a lower interest rate or reducing your loan term can create significant long-term savings on interest, while increasing your loan term can free up funds for other purposes. Considering the information the calculator provides alongside your financial goals can help you decide whether to proceed.
What Is the Break-Even Point in Refinancing?
The break-even point is one of the most important factors when deciding about refinancing. It is the time it takes to recoup the closing costs of your refinance through monthly savings. To find your break-even point, first calculate your monthly savings by subtracting your estimated monthly payment after refinancing from your current payment, then divide the closing costs by this value.
For example, if refinancing saves you $100 a month and your closing costs are $2,500, it would take 25 months to break even and start seeing savings. If you plan to sell your home before reaching this point, refinancing may not make financial sense. If you don’t see any savings or get a negative number, it might be best 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 Rhode Island
The closing costs of refinancing a mortgage in Rhode Island are typically 2% to 5% of the new loan amount. Fixed costs include loan application fees (up to $500), credit reports ($25-$75), appraisals ($600-$2,000), 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). Some purchase-related fees, such as title insurance and inspection fees, may be waived.
Reduce costs by comparing offers from different lenders, negotiating fees, and keeping your credit score as high as possible. Look out for prepayment penalties, and be aware that no-closing-cost refinances often have increased interest rates to cover the closing fees, so are not necessarily more cost-effective.
Here are some ways of reducing your mortgage refinance payment. You could:
• Improve your credit score to secure lower interest rates.
• Extend the term of your loan (but remember this could increase the total interest paid).
• Appeal your property tax to potentially reduce your annual tax bill.
• Shop for a lower homeowners insurance rate by increasing your deductible, bundling policies, or making your home more secure or storm-resistant.
The Takeaway
Mortgage refinancing could allow you to change to new mortgage terms that help you achieve your financial goals. A Rhode Island mortgage refinance calculator can estimate your costs, savings, and break-even point so you can ensure the benefits outweigh the expenses.
Whether you want to save on interest, lower your monthly payments, access home equity through a cash-out refinance, or switch to a different type of loan, the mortgage refinance calculator can help you understand the financial impact of refinancing. Compare offers from different lenders, and consider what you want to achieve by changing your loan terms to find the option that best suits 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 Rhode Island?
Refinancing costs in Rhode Island typically range from 2% to 5% of the new loan amount. These include fixed costs, such as application and appraisal fees, and percentage-based costs, including origination fees and title insurance.
How much does it cost to refinance a $550,000 mortgage?
Refinancing a $550,000 mortgage will probably cost between $11,000 and $27,500, or 2% to 5% of the new loan amount.
Do you have to put 20% down to refinance?
You don’t need to put 20% down to refinance, but having at least 20% equity may be required to qualify. Calculate your equity percentage by subtracting the amount you owe on your mortgage principal from your home’s estimated value and dividing this by your home’s value.
At what point is it not worth it to refinance?
If your break-even point is longer than the amount of time you intend to own your home, refinancing might not be worth it. Use the estimated break-even point provided by a refi calculator to help you assess whether a mortgage refinance will be beneficial.
What month is best to refinance?
The best month to refinance depends on prevailing mortgage rates and your financial goals. Rates tend to be lower in fall and winter, but you should monitor the market and ensure you’re financially stable before refinancing.
Which bank is best for refinancing?
The best bank depends on your financial situation and refinancing needs. Consider factors such as interest rates, closing costs, customer service, and the loan options available. Compare offers from multiple lenders to find a refinance with terms that suit you.
What credit score do you need for refinancing?
To qualify for a mortgage refinance, you usually need a credit score of at least 620. A higher score can allow you to secure better rates and terms. Check your credit report for errors and improve your score before applying.
What are the advantages of refinancing your home?
A mortgage refinance could help you achieve your financial goals, whether you want to make long-term savings on interest, free up funds by lowering your monthly payments, or access the equity in your home. Securing a lower interest rate or more favourable terms for your situation may be a smart financial move.
Does refinancing hurt your credit?
Refinancing can temporarily lower your credit score due to a hard inquiry on your credit. Making your monthly payments on time during the transition to your new loan terms and once your refinance is complete can minimize the impact and potentially improve your score in the long term.
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-Q425-103
