A homeowner must use a refinance mortgage calculator and check out whether he can really reduce monthly mortgage payments before opting for one.  Using simple user interface, a borrower can enter certain information into the mortgage refinance calculator like:
    Mortgage amounts
    Period of mortgage
    Interest rates
    Origination fees
    Closing cost
    Tax amounts

Mortgage companies use these kind of advanced refinance calculators and are available free of cost on their websites.

The mortgage calculator you use for refinance calculations can be linked to other calculators that deal exclusively with specific calculations like:
    Interest rates
    Mortgage lengths
    Tax benefits


A user can gather as much information as he can on changes in mortgage if he goes in for a home refinance.  Only if the final result is beneficial to him does he need to go ahead and apply for refinancing.  Hence, do not hesitate to use a mortgage refinance calculator and get the best deal you can.

There are so many reasons why a person will opt for home refinance. It may be to pay off existing debts or to get extra money that can be used to invest in a new business venture or even to get tax deductions.  The first step towards getting a good deal is to be clear about these reasons. A home is a precious commodity and the all these reasons to apply for home refinance are all flimsy. 

Getting a new loan to pay off an existing one could prove to be disaster. Refinancing your home to Invest money in a business can cause you to lose your home if venture fails.  The benefit that you get on tax deductions is not so great that you need to go for a new mortgage.  Many lending institutions will offer seemingly attractive packages on home refinance options.  Dont be fooled by these, you will be a scapegoat. Opt for home refinance if and only you have solid and valid reasons to go for it. Getting a new loan to clear off an existing one could leave you in more trouble. Refinancing your home for business investment can cause you to lose your home if venture fails. The benefit that you get on tax deductions is not so great that you need to go for a new mortgage.  Many lending institutions lure you with seemingly attractive packages on home refinance options.  Dont get in to all these, otherwise you will end up in a debt trap. Opt for home refinance if and only you badly need so additional cash flow.

If your business doing well and you wish to expand it further and if the market is healthy, you can opt for home refinance for the expansion. If you need more money to complete your studies, which can fetch you a better job, then a home refinance can really help you. Both these are valid reasons to spend on as they will result in increased income and revenue.  Dont opt for home refinance just because everyone is doing it.  After all, this is a new loan that will have to be paid back.

If you dont have increased cash flow and have taken a new mortgage that is added burden to you, then your current lifestyle will change drastically.  Yet, home refinance is a good option for the right and valid reasons and in the right settings. It can improve cash flow with lesser monthly mortgage payments that will result in long term savings that can be used to pay off the first mortgage.  You must make sure that the new interest rates are lesser than what you are already paying. Read the loan terms and conditions carefully and make sure that there are no hidden costs.

If a homeowner has a $100,000, 30-year mortgage at 8% rate of interest, he can consider opting for home refinance if the interest rate fell to 6%.  This could help him save around $134 per month and an overall savings of over $48,000.  Hence, it is critical to determine the costs involved with a home refinance as against long term savings and how long the homeowner plans to continue in the same house.

The type of mortgage you get also depends on how long you plan to stay in the same house.  If you are considering remaining there for more than 10 years, then go with the fixed rate mortgage.  If on the other hand, you plan to sell after 5 years, you can consider the adjustable rate mortgage.  Consult a refinance professional who will offer many good insights into the whole subject so that you do not make a mistake.

Article by John Hoots of Chicago, who is a specialist in real estate investments. For more information on Chicago home loans, visit his site today.