## How to Use a Simple Mortgage Calculator

Using a simple mortgage calculator can help you answer the question “Should I Refinance my Mortgage.” Just because you’re getting the lowest refinance rates from today’s best mortgage lenders doesn’t automatically mean that you’re saving money. Here’s how using a simple mortgage calculator can save you thousands of dollars from unnecessary lender fees and avoid a costly mistake.

## Using a Simple Mortgage Calculator

You can use a simple mortgage calculator to learn about your home loan’s amortization schedule. Mortgage amortization describes the process of paying down the balance of your home loan. Mortgage loans are front-loaded with interest, so in the early years of paying down the balance the majority of your payment goes to pay the lender’s finance charges.

Over time this gradually reverses and more of your payment goes to the principal mortgage balance, building equity in your home at a faster rate. Using a simple mortgage calculator to figure out your payment including annual taxes and insurance can show you how much cash you’re saving and what that lower refinance rate is actually costing you.

### Is Refinancing Your Home Worthwhile?

The first step in using a simple mortgage calculator is to enter your loan balance, refinance rate, and optionally your annual taxes and insurance.

You can enter the values below and click “Calculate Now” to determine your new payment amount.

### Simple Mortgage Calculator

Loan Amount: Years: Mortgage Rate:

Annual Taxes: Annual Insurance:

Monthly Payment =

Is your monthly payment going down? The difference between your old mortgage payment and the new one that you’ve just calculated including taxes and insurance is your monthly savings.

### Should I Refinance My Mortgage?

Now that you’ve figured out if there are any savings to be had refinancing your home loan, you can figure out if paying for a new mortgage is worthwhile. You do this by approximating your break-even point for recouping your total out-of-pocket expenses.

Start by adding up all of the closing costs found on page two of your Good Faith Estimate, including the loan origination fee. You can approximate the amount of time it’ll take you to break even by dividing this total by the amount you’re saving each month.

This is only an approximation because it doesn’t take changes in your term length into account. If you shorten your term length you’ll break even faster. Choosing a longer term length means you’ll never break even thanks to the additional finance charges from those extra years.

Dividing your total closing costs by the amount you’re saving each month tells you the number of months it’s going to take you to break even. If the amount of time is acceptable to you than paying to refinance your home makes sense.

### Get a Better Deal Refinancing Your Mortgage

You can reduce your out-of-pocket expenses by shopping smartly for the lowest refinance rates AND fees. Page two of your Good Faith Estimate makes it easy to do this if you go about requesting mortgage quotes the right way.

Before doing anything else it’s important to make sure your finances are in order by reviewing your credit reports for errors. Fair Credit laws require credit bureaus to give you free access to the information in your credit reports once per year. You can get your free credit reports by visiting the government mandated website AnnualCreditReport.com.

Once you’ve reviewed the contents of your credit reports if you find errors you can dispute the incorrect information online with each credit bureau. Be sure and allow enough time for corrections to be reflected in your credit score before requesting refinancing quotes.

### How to Shop for the Lowest Refinance Rates

Are you hesitant to give a lender your Social Security number when shopping for refinance rates? It’s true that your credit score will take a hit when lenders pull your credit but that’s the only way to get an accurate quote when shopping for refinance rates. The trick is to limit all of your lender credit inquiries to a two week period and you’ll only get dinged once.

Next, make sure that the quotes you request are zero point quotes. You’ll find that many lenders quote refinance rates that include discount points first to make their interest rates seem more attractive.

Discount points are a fee you pay to buy down your mortgage rate. With refinance rates at historically low levels most homeowners won’t gain anything by paying this fee.

If you’d like to see how paying discount points affects your monthly payment there is a table on page three of your Good Faith Estimate; however, you should start your comparison shopping with zero discount point refinance quotes.

Start comparison shopping from a variety of banks, credit unions, lenders and brokers. You’ll find that the fees on page two of your good faith estimate, like the origination fee, vary widely from one type of lender to the next.

The less you pay at closing, the faster you’ll break even recouping your out-of-pocket expenses and the sooner you’ll benefit from your lower mortgage rates.

Pay close attention to that loan origination fee found on page two of your good faith estimate. Many loan officers will tell you that one percent is standard; however, I’ve reviewed several community based credit unions that charge as little as \$400 for their loan origination fee.

You can learn more about paying less for your next home loan with today’s best mortgage lenders by checking out my free Underground Mortgage Videos.

• Get My Underground Mortgage Videos
Here’s a quick sample to help you avoid lender junk fees by shopping smartly…

## Mortgage Refinancing Without Losing Your Shirt

Did you know that according to the Secretary of Housing and Urban Development in the United States your friends and neighbors will overpay sixteen billion dollars for their home loans this year alone? Did you also know that nearly all your friends and neighbors are overpaying as much as \$1200 or more every year? Want to save that \$1200 on your next home loan? I know I could sure use an extra \$1200 in my budget with the direction this economy is taking, how about you? I’m pretty sure I know the answer to that question so settle in with a cold drink because I’m about to share with you my best tips for refinancing with the best mortgage refinance companies without paying hidden markup or junk fees.

### Mortgage Refinancing With Wholesale Rates

If this is your first visit to RefiAdvisor.com you might be wondering who the heck am I and how am I qualified to give you mortgage refinancing advice? First of all, my name is Robert Regehr. I’m not a mortgage broker, banker, or anyone working in anything remotely financial. How am I qualified to give you mortgage refinancing advice? My first home loan was a train wreck. I fell for every dirty, underhanded trick that a sleazy mortgage broker uses to boost their commission at your expense when mortgage refinancing. I didn’t have a clue how bad my first home loan was until a good friend of my parents, who is a retired mortgage broker, pointed out the hidden markup and junk fees in my home loan.

When I figured out this broker had soaked me to the tune of \$1200 a year I was mad enough to start this blog with the help of that retired mortgage broker and I’ve been sharing this dirty little mortgage refinancing secret the broker fat cats would rather you didn’t know about with anyone that’ll listen. I am of course, referring to a hidden fee paid by lenders called mortgage refinancing Yield Spread Premium. Don’t worry if you’ve never heard of Yield Spread Premium, I had never heard of it and based on the facts from the HUD Secretary, I’d say 97% of your friends and neighbors have never heard of it either.

Simply put, mortgage refinancing Yield Spread Premium is a kickback lenders pay to any broker that locks and closes your new home loan with a higher than necessary interest rate. Lenders do this because they make the majority of their profits selling your home loan to investors on the secondary mortgage market. It’s this hidden markup that drives your mortgage refinancing up by as much as \$1,200 a year or more in some States like California.

The good news is that you don’t have to fall for this hidden mortgage refinancing markup. It is possible to refinance your home paying just a flat fee of just one percent for loan origination and walk way from closing with a wholesale mortgage rate, you just have to know how to go about it. Don’t worry, you don’t have to be a personal finance guru or have a cousin in the business to get the kind of mortgage refinancing deal I’m describing here, you just need to find the right person to arrange your next home loan.

### Get Wholesale Mortgage Rates & Save…

You can learn more about finding the right person to arrange your next home loan with wholesale interest rates by checking out my free Underground Mortgage Refinancing Videos.

Here’s a quick sample to get you started on the road to a wholesale mortgage rate by exposing more of your broker’s very dirty secret…

## When Does It Make Sense to Refinance?

The Internet can be an excellent resource for information when it comes to the question “When does it make sense to refinance;” however, there is a lot of bad advice out there. Bad advice can steer you away from the opportunity to save thousands of dollars or worse yet, cost you thousands of dollars in hidden markup and junk fees. Here is a logical approach to answering the question “When does it make sense to refinance?” with confidence for yourself.

### When Does it Make Sense to Refinance?

Ask any financial advisor the question “When does it make sense to refinance” and many will quote you the 2% rule of mortgage refinancing. This particular nugget of bad refinancing advice dates back to the 1980s when most people had double-digit mortgage rates and the costs of taking out new home loans were much higher. Today, with low mortgage rates and affordable fees the two percent mortgage rate no longer holds water when evaluating your refinancing options.

Instead, it makes more sense to evaluate your refinancing options on a cost versus savings basis. You can answer the question when does it make sense to refinance for yourself simply by determining how much it will cost you in origination fees and other closing costs and diving the amount you save each month by your total cost. This assumes that your new mortgage payment will be lower than the old one; however, keep in mind that there are valid reasons for refinancing with a higher mortgage payment, including taking cash back at closing.

### Evaluate Your Mortgage Refinancing Options

Here’s an example to illustrate my point and help you answer the question “When does it make sense to refinance?” Suppose you’re refinancing your home for \$250,000 and your old mortgage rate was 6.5%. Your old payment on a thirty year, fixed- rate mortgage loan would have been \$1,580. You have the opportunity to refinance at 5.5%, which will cost you \$5000 in closing costs.

So is this a good idea? It is when the amount of time it takes you to recoup the \$5000 is acceptable for you. In this example, your new, lower mortgage payment will be \$1,419, which is a savings of \$161 per month. Because it’s costing you \$5,000 to refinance this home loan it will take you 31 months, (\$5000 divided by \$161) just over two years to recoup your expenses. If this is an acceptable timeframe for recouping your expenses then you have the answer to the question “When does it make Sense to Refinance?”

You can learn more about answering the question When does it make sense to refinance? by checking out my free Underground Mortgage Refinancing Videos.

Here’s a quick sample that exposes why your neighbors are all paying too much for their home mortgage loans.

## Home Mortgages for Dummies

If you’re looking for home mortgages to purchase your home or to refinance your existing mortgage there are several things you need to know about home mortgage rate quotes to avoid paying too much. 2010 has seen some changes to the Real Estate Settlement Procedures Act; however, these changes are still too little too late when it comes to protecting homeowners from abusive lending practices. Here are several of my best mortgage tips to help you get a wholesale mortgage rate for your home mortgages while avoiding unnecessary junk fees and save as much as \$1200 per year.

### Home Mortgages for Dummies

Everyone wants the lowest mortgage rates for their home loans and the Internet makes it very easy to shop for mortgage rate quotes. One thing that you might not know about those mortgage rate quotes you find on the Internet and get from your local mortgage companies is that they’ve all been marked up to create a commission for the person arranging your home loan. What’s wrong with that you might ask, I mean mortgage brokers gotta eat too right? That’s why you pay an origination fee for the mortgage broker or company arranging your home loan. Origination fees paid out of pocket don’t drive your mortgage payment up, taking cash out of your pocket for no good reason. Do you really want to pay that person’s commission over and over every month that you keep your home loan?

Driving your mortgage payment up unnecessarily is what taking a higher mortgage rate to pay the broker commission does. One of the changes for 2010 in the Real Estate Settlement Procedures Act is that mortgage brokers have to include Yield Spread Premium with their loan origination fee in your loan documents. This fee for markup of your mortgage rate has always been on the HUD-1 statement; however, shady mortgage brokers explain it away by telling you that because the fee is coming out of the lender’s pocket they don’t need to worry about it. There is nothing in the law now that prevents loan originators from doing this so it’s pretty much business as usual for dishonest mortgage brokers.

### How to Avoid Unnecessary Mortgage Rate Markup

The good news for you is that you don’t have to be a financial guru to get a wholesale mortgage rate that doesn’t include this unnecessary markup or junk fees. It all comes down to finding the right mortgage broker for the job, one willing to work for a flat and perfectly reasonable origination fee of one percent. That’s what you want to pay…one percent up front that won’t drive up your mortgage rate and monthly payment for no good reason.

Finding the right mortgage broker for the job isn’t hard either…there are plenty of honest, hardworking mortgage brokers out there with families to feed just like yours. Local mortgage brokers are almost always better… local, self-employed mortgage brokers don’t have the costly overhead that comes with a nationwide company. You can get started by checking out the mortgage brokers in the phone book. Tell them that you understand how Yield Spread Premium works and simply will not accept any mortgage loan that includes this markup. Offer to pay a flat origination fee of one percent and you’ll be well on your way to getting a wholesale mortgage rate for your next home mortgage loan.

Here’s a sample of what you get for free today… this module explains why 95% of your neighbors overpay for their home loans.

## Free Refinancing Information

If you’re searching the Internet for free refinancing information you probably already know that there’s a lot of bad mortgage advice on the web. Everyone with a website is a self-proclaimed mortgage refinancing expert claiming that they have the lowest rates and fees. The problem is that many people, including almost all of your neighbors, wouldn’t know a good mortgage deal if it came and sat in their lap. First of all, I’m not here today to sell you a mortgage loan; the free refinancing information on this site will show you how to recognize a good mortgage deal when you find one. Here are my best mortgage refinancing tips to help you get a great deal when refinancing your home loan without paying unnecessary markup or junk fees.

### Free Refinancing Information Online

There are tons of mortgage refinancing resources available on the Internet and an equal amount of bad mortgage advice. One of the more famous and equally bone-headed tidbits of bad advice you’ll encounter is the so called two percent rule of mortgage refinancing. People still quote the two percent rule when asking if it makes sense to refinance their mortgage loans. Simply put the two percent rule of mortgage refinancing states that you should not refinance your home loan unless your new mortgage rate is at least two percent lower than the mortgage rate you’ll get from refinancing.

### Compare Mortgage Refinance Rates

Rather than relying on this old chestnut of bad mortgage advice it makes more sense to evaluate your decision to refinance based on how much it will cost you and how long it will take to recoup your expenses. Keep in mind that not everyone refinances their homes to get a lower payment. If you’re the market to consolidate bills or borrow cash against your home equity you could wind up with a higher mortgage rate and payment than you have now; however, it could still make good sense to refinance in your situation. If you’re in market for a new home loan with a lower mortgage rate and payment you’ll want to weigh your options based on the cost/savings of a new mortgage loan.

Every mortgage loan has closing costs that you’ll have to pay…and some more than others. These closing costs include fees charged by the underwriter, origination fees charged by the broker, various administrative fees and any unnecessary junk fees you unknowingly agree to pay. (Check out the free mortgage videos available on this website to find out more about avoiding these unnecessary junk fees) You can easily calculate how long it will take you to recoup your closing costs on the new mortgage by dividing your total expenses from refinancing by how much lower your new mortgage payment will be. This will tell you the number of months it will take to recoup your closing costs from refinancing…if the timeframe is acceptable to you then it makes sense to refinance the mortgage in your situation.

### How to Avoid Mortgage Junk Fees & Unnecessary Markup

There are a number of ways your neighbors overpay for their mortgage loans. The most common is also the least known…a fee paid to your loan originator known as Yield Spread Premium. The person arranging your home loan is called the loan originator and mortgage lenders pay this person the fee known as Yield Spread Premium for locking and closing your home loan with a higher than necessary mortgage rate. This unnecessary markup of your mortgage rate results in a higher than necessary mortgage rate and according to the Secretary of Housing and Urban Development will result in homeowners in the United States overpaying over sixteen billion dollars this year alone.

There are a number of other mortgage junk fees your neighbors agreed to pay that are also the reason they pay too much for their mortgage loans. These junk fees include paying too much for the mortgage broker origination fee as well as agreeing to other junk fees like mortgage rate lock fees, broker courier fees, and excessive loan processing and administrative fees.

You can find out how to avoid all of these junk fees including the unnecessary markup of your mortgage rate for a commission by checking out the free refinancing information in my Underground Mortgage Videos.