| One of the ways you can determine if mortgage | | | | The term calculate balance means to let the mortgage |
| refinancing is a sound idea for you is to use one of the | | | | refinancing calculator determine what balance you |
| many mortgage refinancing calculators available at | | | | have left based on the information you have given |
| finance sites on the Web. Mortgage refinancing | | | | about the original loan and the years that remain on it. |
| advisability depends on several things. You have to | | | | To let the calculator determine if mortgage refinancing |
| look at your current rate of interest, the rate you might | | | | is advisable for you youll need to know what your |
| secure with refinancing, how long you plan to live in | | | | home is currently appraised at or guesstimate this if |
| your current home, and the closing costs on the | | | | you dont know and the balance of the mortgage. The |
| mortgage refinance. | | | | calculator will assume you want to refinance the |
| To fully understand the results of the mortgage | | | | balance. If that is not the case � if you have funds |
| refinancing calculators and the use they make of your | | | | from elsewhere that you are going to apply to the |
| information it is important to understand mortgage | | | | balance prior to refinancing then youll want to subtract |
| refinancing jargon. Weve included some here. | | | | that total from the balance and indicate to the |
| The first term is probably self explanatory. Youll hear | | | | calculator that that new figure is your balance. Youll |
| mortgage refinance professionals refer to your original | | | | also have to have some idea of what new interest |
| mortgage amount. This simply means the amount of | | | | rate you are likely to get and then decide on the |
| the loan that you originally signed for when you first | | | | number of years you want to take to pay off the new |
| took out your mortgage. Appraised value is a term | | | | loan. |
| youll hear frequently as well. Lenders are referring | | | | What is important to gather as well, is the loan |
| here to the value the professional appraiser put on | | | | origination rate. This is the percentage of this mortgage |
| your home when it was first purchased. The phrase | | | | refinance balance that you pay the lender as his or her |
| current term in years means the number of years you | | | | loan origination fee. In most cases, this is going to be |
| were given to pay off your original loan. If you took out | | | | one percent of the loan balance. The term other |
| a 30 year mortgage your current term in years is | | | | closing refers to any closing costs for the new loan. |
| thirty. Years remaining will come up in any mortgage | | | | This will include appraiser and filing fees. |
| refinancing discussion or calculation. It means the | | | | Points Paid is an important term to know for mortgage |
| number of years you have left to pay on your | | | | refinancing calculations. It means the number of points |
| mortgage. | | | | youll have to pay to your lending institution to reduce |
| If someone asks for your income tax rate when they | | | | the mortgage interest rate. Each point represents one |
| calculate your mortgage refinancing costs and options | | | | percent of the amount of the new loan. |
| they want to know what rate of interest you paid to | | | | PMI is an important term as well. It means principle |
| Uncle Sam last year when you did your taxes. | | | | mortgage insurance. |