The best way to use a refinance mortgage calculator is to first work out exactly what you’re looking for in your next home loan, then apply the relevant calculations.
For example, your refinancing goal may be to:
- Lower repayments: A refinance calculator can help you switch and save, by working out the lowest interest rates you may be able to afford, and how much you may save compared to your current mortgage rate.
- Lower total loan cost: Looking at the big picture, you can calculate the overall savings you could enjoy by switching home loans. You could also see how changing your loan term could affect your loan’s total cost.
Once you know what you want from your new home loan, you can select the correct option from above the calculator.
Next, all you’ll need to do is:
- Enter your current loan balance
- Enter your current loan term
- Enter your current interest rate
Then, you’ll need to:
- Enter a new loan term
- Enter a new interest rate (either enter your own, or select an option from the RateCity database)
Your calculations will then automatically load for your review.