A remortgage calculator can help you estimate your monthly remortgage payments, which will help you determine what size loan you can afford and how much down payment you are going to need in order to have monthly payments you can afford.
Before going out and looking for a new home or remortgaging your current home loan you should use a remortgage calculator.
The remortgage calculator we provide here can be used to figure out your monthly remortgage payments based on different criteria.
I will go over the different criteria used in this remortgage calculator to figure out monthly mortgage payments.
Remortgage Calculator Details
Purchase Price; is the price the house is going to cost you or if you are remortgaging your current home, it is the amount needed to pay off your current loan.
Down Payment; here you will put in the percentage of the purchase price that you are going to bring into closing as a down payment.
This is the amount of money you have come up with in order to get the loan.
A example would be, if you purchase a house for $100,000 and you put a 5% down payment, then you have to come up with $5,000 dollars for your down payment.
Mortgage Term; this is the length of time you need to pay off the loan.
Normally this would be 30 years (as in a 30 year fixed loan), however there are many different types of remortgages that have very different loan terms and lengths.
Interest Rate; you would put the current market interest rate for the type of loan you are looking to get.
A example would be, at the time of this writing, the current interest rate for a FHA 30 year fixed rate loan is %4.31.
Property Tax; this would be the amount of property tax you pay on a yearly basis on your current home or the amount of property taxes you will be required to pay on the home you are purchasing.
Property Insurance; all lenders require you to have property insurance on your home to protect them from a major loss. This is were you put the amount of your yearly cost of property insurance.
PMI; most people don’t even know what this is or why they have to have it.
PMI is private mortgage insurance, basically it is insurance for the lender in case you default on the loan.
There are many different things that determine the amount, but typically it is about 40-50 dollars per hundred thousand borrowed.
If you don’t know or don’t know how to figure it out just use the remortgage calculators default amount to estimate your payments.
First Payment Date; is the date you want your first payment to begin, typically it will be the first of the month following your closing, which is about 30-45 days from your closing date.
Now that you have all the information you need to use the remortgage calculator feel free to play with it and see what your monthly payments might be, compare your findings to the mortgage companies good faith estimate.