Can I use a mortgage calculator to calculate the advantages of refinancing my loan to get rid of my variable rate mortgage for a fixed rate loan?

Refinancing an existing home loan that is on an adjustable rate to obtain a more stable and predictable monthly payment with a fixed rate mortgage is a common choice.  A refinance loan helps many borrowers lower their monthly payments by extending the repayment time or by obtaining a better interest rate. A mortgage refinance may also provide some peace of mind by simply replacing an existing adjustable rate mortgage with a fixed rate mortgage.  The borrower will not have to worry anymore that interest rates will rise with the fixed rate loan.

If a borrower accepted an adjustable-rate mortgage when they took out their loan and interest rates have increased, refinancing is still an option so the borrower can switch to a fixed-rate loan.  A mortgage payment calculator can calculate what the new payments will be on a fixed rate mortgage.  A mortgage calculator that compares fixed rate loans and adjustable rate mortgages may also be used to investigate the payment differences and even the possibility of refinancing to another adjustable rate mortgagee.  Be sure to input the most accurate and current mortgage rates into the mortgage calculators.

This entry was posted on Wednesday, December 10th, 2008 at 4:55 pm and is filed under Mortgage FAQs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.