Benefit
The benefit of comparing different refinance offers properly is that you know what different refinance opions and offers will mean to your future. You can take out more cash at a lower payment with one refinance option instead of another.
How It Works
Refinance offers can be very different from each other, including:
rates
loan size
loan term
A longer loan term, such as a 40 year loan or a 50 year loan, will allow you to have a lowre monthly payment than a regular 30 year loan.
This allows you to take the same amount of cash out and have a lower monthly payment.
There are different loan programs offered for 30, 40, 45, and 50 years.
Example
Loan Factors
Loan 1
Loan Amount
390,000
Loan Note Rate
6.00%
Loan Length (Years)
30
Regular Monthly Payment
2,338
Interest Only Payment
1,950
Loan Factors
Loan 2
Loan Amount
351,000
Loan Note Rate
6.50%
Loan Length (Years)
30
Regular Monthly Payment
2,219
Interest Only Payment
1,901
Loan Factors
Loan 3
Loan Amount
429,000
Loan Note Rate
7.00%
Loan Length (Years)
40
Regular Monthly Payment
2,666
Interest Only Payment
2,503
Loan Factors
Loan 4
Loan Amount
487,500
Loan Note Rate
7.50%
Loan Length (Years)
30
Regular Monthly Payment
3,409
Interest Only Payment
3,047
This example demonstrates how different loan factors can change the size of the monthly payment. Interest only payments are also an option on some loans.
Visit our website to use a refinance mortgage calculator.
