Refinance Calculator
| Current Monthly Payment: | |
| New Loan Amount: | |
| New Interest Rate: | % |
| Terms of New Loan (years): | |
About The Calculations
This is an approximate calculation based on interest rate, rather than APR. Read on to learn more about APR.
What is APR (Annual Percentage Rate)?
APR differs from regular interest rates because it takes into consideration other fees paid to the lender, such as closing costs. APR makes it easier to compare loan prices from different lenders.
If you get a loan for $180,000 and pay the lender $1,000 in closing costs, you're really only getting a $179,000 mortgage. APR factors that cost in and shows a more realistic view of your percentage rate.
Mortgage Payment Formula
The formula for calculating a mortgage payment is:
Monthly Payment = {Rate + [Rate / (1 + Rate)months - 1]} x Loan Amount
Rate = APR / 1200