Loan Options

You can refinance and save in one two ways: lower your monthly payments, or increase your monthly payments and pay off your loan faster and therefore pay less in total.

You can also not save anything at all, if you substantially increase your loan size and monthly payment.

Payment Size Savings

You can lower your monthly payment in a variety of ways. You can increase the term of your loan. If you switch from a 15 year loan to a 30 year loan you will automatically lower your monthly payment with the same loan size and interest rate. You may cash some money out and increase your loan size and still have a lower monthly payment.

Stretching out your loan term means it will take you longer to pay off your loan. You will end up paying more interest over time, even though your current monthly payment is lower.

You can also switch to an interest only payment or a minimum payment option loan. With these loans you stop paying off any principal on the loan, and the minimum payment option loan even gives you the option of increasing your loan size in exchange for having a very low monthly payment.

Mortgage Calculators

There are many free online mortgage calculators that can help you figure out your monthly payments.

You may decide that you want the same monthly payment but want to cash out some equity.

You can do this by stretching out your loan term and borrower additional money until your new monthly payment is identical to your old one.

You may decide to lower your monthly payment and cash some equity out. You may be able to do this with a minimum payment option loan or an interest only loan.