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Refinancing your mortgage can be a great strategy to save money over the long term while adjusting your monthly payments to better suit your budget and current finances. Wisconsin homeowners can use our refi mortgage calculator to learn the potential benefits and costs of refinancing your existing home loan. Our article will explain the process from start to finish, providing you with the necessary information to make the right decision for you and your family.
Key Points
• A Wisconsin mortgage refinance calculator can help homeowners determine if refinancing could be financially beneficial.
• Using a mortgage refinance calculator can help you estimate potential savings and learn the break-even point.
• Refinancing can assist in achieving financial goals such as reducing monthly payments, paying off the loan faster, or accessing home equity.
• Considering the costs of refinancing, including closing costs and discount points, is part of making a well-informed decision that takes into account the total financial impact of refinancing.
• Maintaining a good credit score may help to secure better refinancing terms and lower interest rates, potentially saving thousands of dollars.
Wisconsin Mortgage Refinance Calculator
Calculator Definitions
• Remaining loan balance: The remaining loan balance is the principal amount you still owe on your current mortgage, excluding interest charges. It determines how soon you can refinance your mortgage.
• Current/New interest rate: Interest is the percentage of the total loan amount that the lender charges. Your current and potential new interest rates are integral to determining potential savings from refinancing.
• Remaining/New loan term: The remaining loan term refers to the number of months left on your current mortgage, while the new loan term is the duration of the refinanced loan you are considering.
• Points: Points are upfront fees paid to the lender to lower your interest rate. Purchasing points is optional, but it may be a smart strategy if you plan to stay in your home for an extended period.
• Other costs and fees: Other costs and fees include origination, appraisal, and attorney fees. These expenses typically range from 2% to 5% of the loan amount and can significantly affect your break-even point.
• Monthly payment: Your monthly mortgage payment includes amounts paid toward the principal and interest. One way to assess your possible savings is to compare your current payment with the estimated payment after refinancing.
• Total interest: Total interest is the cost of borrowing money, excluding the principal repayment. The total paid in interest can often equal or exceed the original loan amount.
How to Use the Wisconsin Mortgage Refinance Calculator
Using the Wisconsin mortgage refinance calculator isn’t difficult. Just input your current loan details and the potential new loan terms to help you estimate monthly savings, total interest paid, and the break-even point.
Step 1: Enter Your Remaining Loan Balance
Begin by entering your remaining loan balance, which is the principal amount you still owe on your current mortgage, excluding interest charges. You may want to refer to your most recent mortgage statement for the current amount.
Step 2: Add Your Current Interest Rate
Enter your current mortgage rate into the refinance calculator. This rate is how your lender determines your current interest payments.
Step 3: Estimate Your New Interest Rate
Estimate your new interest rate by considering factors such as your credit score and the type of mortgage loan you choose. Compare current mortgage rates from different lenders to get a realistic range of rates. A lower interest rate may translate to potential savings on monthly payments and total interest.
Step 4: Select Your Remaining Loan Term
Select your remaining loan term, which is the number of months left on your current mortgage. You may want to refer to your mortgage statement again for the precise figure.
Step 5: Choose a New Loan Term
Select a new loan term, which can be anywhere from 10 to 30 years. You’ll be able to see how it affects your monthly payments and total interest. A shorter term could reduce total interest but increase monthly payments, while a longer term may lower monthly payments but increase total interest costs.
Step 6: Enter Any Points You Intend to Purchase
Input the number of points you plan to purchase, if any. Each point costs 1% of the loan amount and may reduce the rate by 0.25%. The calculator may help you assess how different point purchases affect your monthly payments and overall costs.
Step 7: Estimate Your Other Costs and Fees
Estimate other costs and fees, such as lender, appraisal, and attorney fees. These expenses typically range from 2% to 5% of the loan amount. Including these amounts provides a comprehensive view of your total mortgage refinancing costs.
Step 8: Review Your Break-Even Point
This is the number of months required to offset your closing costs.
Benefits of Using a Mortgage Refinance Payment Calculator
Using a Wisconsin mortgage refinance calculator can help you evaluate if refinancing is a viable option to lower your costs. Entering different interest rates and loan terms may enable you to see how these changes might affect your monthly payment and total interest paid. A lower monthly payment may free up funds for other financial goals, and a lower interest rate could save you thousands of dollars over the loan’s term.
The calculator can also help you understand how to refinance a mortgage using different refinance scenarios, such as switching from a 30-year to a 15-year loan.
What Is the Break-Even Point in Refinancing?
The break-even point is the number of months required for the savings from a lower interest rate or reduced monthly payments to cover the upfront costs of refinancing. You can find this point by subtracting your estimated monthly payment after refinancing from your current mortgage payment, then dividing the closing costs by the monthly savings.
For example, if your closing costs are $6,000 and you save $200 per month, it would take 30 months to break even. Refinancing your home may not be wise if you plan to move or sell your home before you break even.
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 Wisconsin
Closing costs for mortgage refinancing in Wisconsin can range from 2% to 5% of the new loan amount. Typical fixed costs include loan application fees (up to $500), credit report fees ($25 to $75), home appraisal fees ($600 to $2,000), recording fees ($25 to $250), and attorney’s fees ($500 to over $1,000). Percentage-based costs often comprise loan origination fees (0.5% to 1% of the purchase price), title search and insurance (0.5% to 1% of the purchase price), and mortgage points. Some fees, such as title insurance and inspection fees, are not always required for refinances.
Some lenders offer no-closing-cost refinancing, but these programs often come with higher interest rates. Similarly, refinancing a jumbo loan is typically more costly. Comparison shopping for rates, negotiating with lenders and service providers, and maintaining a good credit score are all ways to lower your costs.
Tips on Reducing Your Mortgage Refinance Payment
There are some methods you can use to lessen your mortgage refinancing payment. It’s probably best to implement these before you begin the process:
• Improve your credit score to secure better refinancing terms and lower interest rates.
• Extend the term of your loan to reduce monthly payments, though this will increase total interest paid.
• Appeal your property tax assessment to potentially lower your monthly payment by gathering the relevant evidence and presenting it to your local tax assessor.
• Shop for a lower homeowners insurance rate by increasing your deductible, bundling policies, or making home improvements.
The Takeaway
Refinancing your mortgage can be a great way to manage your monthly payments and reduce overall costs, but the decision requires careful consideration. Using our Wisconsin mortgage refinance calculator provides you with your potential break-even point and your possible savings over time. However, it’s usually best to weigh the upfront costs and ensure the long-term benefits offset these expenses.
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 Wisconsin?
Refinancing in Wisconsin typically ranges from 2% to 5% of the loan amount. These costs include lender, appraisal, and attorney’s fees, as well as costs associated with pulling your credit report.
How much does it cost to refinance a $350,000 mortgage?
Refinancing a $350,000 mortgage can cost between $7,000 and $17,500, or 2% to 5% of the loan amount. Application, credit report, appraisal, and attorney fees all factor into refinancing costs for your home loan.
Do you have to put 20% down to refinance?
It’s not usually necessary to put 20% down to refinance. Instead, lenders typically require borrowers to have at least 20% equity in their home. You can calculate your equity percentage by subtracting the balance you owe on your mortgage principal from your home’s estimated value. Dividing the answer by your home’s value will yield your percentage of equity.
At what point is it not worth it to refinance?
If you plan to sell your home before the break-even point, if the break-even point is over two years away, or if the interest rate reduction is minimal, refinancing may not be a wise decision. You can calculate your break-even point by dividing closing costs by monthly savings.
What month is best to refinance?
The best month to refinance can vary based on market conditions. Generally, interest rates are more favorable in the fall and winter due to lower home-buying activity. Keep a close eye on mortgage rates, and ensure you’re financially prepared to make this commitment.
Which bank is best for refinancing?
Choosing the best bank for refinancing primarily depends on your unique financial goals and refinancing needs. You can compare offers from multiple lenders to find the best deal, but don’t forget that customer service can be equally important. Look for a lender with a solid reputation for efficiency and excellent customer service.
What credit score do you need for refinancing?
Lenders typically require a minimum credit score of 620 for conventional refinancing. Higher scores, such as one 700 or above, may secure better rates and terms. Check your credit score for errors and pay down debt to improve your score before applying.
What are the advantages of refinancing your home?
Refinancing can secure a lower interest rate, which reduces monthly payments and the total interest paid. It may also facilitate a switch from an adjustable-rate to a fixed-rate mortgage for stability, or help you access home equity through a cash-out refinance. Using our home refi calculator may help you estimate savings and costs, ensuring that refinancing suits your financial picture.
Does refinancing hurt your credit?
Refinancing can temporarily lower your credit score due to hard inquiries. However, the impact is usually minimal, and the long-term benefits often outweigh this initial dip. Minimizing inquiries by completing the process quickly can help, as can managing your new loan responsibly.
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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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