Mortgage Refinance Calculator

A mortgage is a secured loan in which an asset is given as a security against the loan to acquire that asset. This is most useful when you prefer to purchase a house. You could take a loan giving the house as security and acquire and reside in the same. There are no issues as long as you make prompt monthly payments.

The problem arises when you make any default on the loan. At this time, the lender could take possession of the house, sell the same and realize the loan. Thus, the risk of the lender is reduced and this should spell as lower rate of interests for you. But this does not always happen; many borrowers do not do the groundwork before taking the loan. Thus, they are stuck with ones that have unfavorable rate of interests.

At some other times, the market rate of interests themselves may fall. This may also seem really unfair to you. You would be stuck with high rate of interests while all others may have pretty favorable terms. The best way to resolve this problem is to refinance your loan. That is, you should take a new loan with a favourable rate to replace the previous one with a higher rate.

When you decide to refinance, the mortgage refinance calculator rate should be determined for the some options available and a wise option should be made. It is better to make the comparisons in absolute terms as this would give you the clear and complete picture.