Re-mortgage Calculator This calculator will determine the estimated payment on a re-mortgage loan. Loan Amount: Interest Rate (%): Loan Term (in years): Estimated Monthly Payment: function calculate() { var loanAmount = document.getElementById('loanAmount').value; var interestRate = document.getElementById('interestRate').value / 100; var loanTerm = document.getElementById('loanTerm').value; var monthlyInterestRate = (interestRate / 12); var termInMonths = (loanTerm * 12); var monthlyPayment = loanAmount*(monthlyInterestRate*Math.pow((1 + monthlyInterestRate), termInMonths))/(Math.pow((1 + monthlyInterestRate), termInMonths) - 1); document.getElementById('paymentAmount').value= Math.round(monthlyPayment * 100) / 100; } What is a re-mortgage calculator? A re-mortgage calculator is a tool that can help you compare current market rates and decide whether or not it is in your best interest to refinance your current mortgage. By plugging in a few basic pieces of information, such as your current mortgage balance, the term of your loan, and your expected interest rate, these calculators can quickly provide you with the approximate amount you stand to save by refinancing your loan. What Should I Consider Before Using a Re-mortgage Calculator? Before you use a re-mortgage calculator, it’s important to consider a few key factors. First, consider the current rate environment. Low interest rates mean it may be a good time to refinance. Other factors to consider include the closing costs associated with refinancing and any other fees associated with the loan. Interest rates alone may not be the only factor in deciding to refinance. You’ll also want to consider the length of time you plan to live in the home. If you plan to stay for the long-term, it may make sense to take advantage of the current low interest rates. If you plan to move in the near future, however, it may not be worth the closing costs and other fees. How Do I Use a Re-mortgage Calculator? Using a re-mortgage calculator is relatively easy. Most calculators require you to plug in the following--your current balance, interest rate, length of time left on your loan and the new interest rate you think you could get for the refinance. Once you fill in this information, the calculator will give you an estimate of how much you could save over the term of the loan. The difference between your current payments and the new payments is your estimated savings. Are There Other Benefits to Refinancing? In addition to potentially saving money through a lower interest rate, there are a few other advantages to refinancing. One popular option is refinancing your loan into a fixed-rate loan. This provides a stable monthly payment and offers the peace of mind of knowing that your payment won’t go up if interest rates increase. Other options include shortening the term of your loan which can help you pay off the loan more quickly or reducing the size of your monthly payments. Keep in mind, however, that reducing the monthly payment may also mean you’ll end up paying more interest over the life of the loan. What’s the Bottom Line? In the end, the decision to refinance or not is up to you. But by using a re-mortgage calculator you can get a better idea of what your potential savings could be. Of course, it’s also important to consider the other fees and closing costs associated with refinancing, to make sure you understand the full picture. Once you’ve done your research, it’s time to make the decision that’s right for you and your finances.