Mortgage Tools

 

Looking to refinance your current home or looking for a new one?  You’ve come to the right place.  LowerMyBills has assembled a great combination of tools, content and lender reviews for you to make sure you are getting the best deal for your situation.

 

 

Mortgages

Check out our latest mortgage tools

Mortgage Analysis

We Rate Your Current Mortgage Against Your Financial Goals

Our Mortgage Analysis Tool provides a grade for your current mortgage, based on how well it aligns with your financial goal compared to other options available in the market today.

How it Works

  • Enter your mortgage goal (eg Lower Monthly Payment).
  • Then enter your current loan amount, home value, and monthly payment.
  • Lastly, enter your current rate so we can compare it to today’s rates.
  • We’ll then analyze your situation and grade it based on available options.
The refinance calculator results will show here once you complete the questions above.

Calculating

Loan Type
New Monthly Payment
Monthly Savings
Interest Savings
Cash Out
APR
(Rate)
Term
Lower Payment
Lower Rate
Pay Off Faster
Pay Less Interest
30 YR FIXED
15 YR FIXED
5/1 YR ARM
CASH OUT
$
$
$
$
$
$
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$
$
???
$
$0
$0
$0
$
%
%
%
%
30 Years
15 Years
30 Years
30 Years
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Preparing results... We're putting together your grade.

Find Out If You’re In The Right Mortgage For Your Situation

Our Mortgage Advisor provides homeowners with customized recommendations about the type of mortgage you should be in based on your unique circumstances.

 

Preparing results... We think we found a mortgage option that may be better for you.

Find the Right Refinance Option

Calculate your new monthly payment, interest rate, and potential savings across a number of different loan types.

How it Works

  • Enter your current loan amount, home value, and years left on your current mortgage
  • Next, enter your current rate so we can forecast what types of refinance loans make sense
  • Based on your inputs, we will show you if and how much you could save by refinancing your current loan
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The refinance calculator results will show here once you complete the questions above.

Calculating

Loan Type
New Monthly Payment
Monthly Savings
Interest Savings
Cash Out
APR
(Rate)
Term
Lower Payment
Lower Rate
Pay Off Faster
Pay Less Interest
30 YR FIXED
15 YR FIXED
5/1 YR ARM
CASH OUT
$
$
$
$
$
$
???
???
$
$
???
$
$0
$0
$0
$
%
%
%
%
30 Years
15 Years
30 Years
30 Years

Get Matched To Lenders Who Can Help You Lock In Your New Payment.

The refinance calculator results will show here once you complete the questions above.

 

Our Goal: Help you compare the pros and cons of different mortgages so you can make an informed decision on which one you should select!

How it Works

  • We will show you the many different mortgage options that are available to choose from
  • You choose which ones you find most interesting and want to learn more about.
  • We will display them for you in a digestible format that will allow you to weigh the pros and cons!

Choose Mortgages to Compare:

Loan Type
Get Cash
Lower Payment
Lower Rate
Pay Off Faster
Pay Less Interest
30 Year Fixed
15 Year Fixed
Cash Out
5/1 ARM
FHA*
VA*
HARP*
Depends On Term
Depends On Term
Depends On Term
Depends On Term

*assumes a 30 year term

Mortgage Requirements

30 Year Fixed
  • Good to excellent credit, likely needs to be 600+
  • Steady income
  • At least 3% down payment
15 Year Fixed
  • Low to no debt
  • Excellent credit, likely needs to be 700+
  • Steady income
Cash Out
  • Must have owned current home for at least a year
  • Must have a minimum credit score-usually higher than a normal/previous refinance requirement
  • Current loan to value ratio must be around 85%
5/1 ARM
  • Excellent credit, likely needs to be 700+
  • At least 5% down payment
  • Steady income
FHA
  • Steady employment over the past 2 years
  • Valid SSN
  • Must be for primary residence
  • Loan must be from an approved FHA lender
  • Have to pay mortgage insurance premiums
  • Allows lower credit, minimum of 500
  • Low down payment with a minimum of 3.5%
VA
  • Served 90 consecutive days of active service during wartime
  • Served 181 days of active service during peacetime
  • Have more than 6 years of service in the National Guard or Reserves
  • You are the spouse of a service member who has died in the line of duty
  • Must maintain a certain amount of income left over each month
  • Satisfactory credit of around 600
HARP
  • Current on your mortgage
  • No 30 day+ late payments in last six months
  • No more than one in the past 12 months
  • Must be for primary residence
  • Loan is owned by Freddie Mac or Fannie Mae
  • Loan was originated on or before May 31, 2009
  • Current loan to value ratio must be greater than 80%
  • Credit score requirement varies by lender

Pros and Cons of the Different Loan Types

 

15 Year Fixed Rate

  • Lower interest rate
  • Lower amount to pay back
  • Home paid off in only 15 years
  • Higher monthly payment

30 Year Fixed Rate

  • Lower monthly payment
  • Higher interest rate
  • In debt for 15 more years
  • Higher amount to pay back

5 Year Adjustable Rate

  • Lower monthly payment for the first five years
  • Perfect if your living situation isn’t permanent
  • Monthly payments after first 5 years will be unpredictable (no fixed interest rate)

Check Out All of the LowerMyBills Mortgage Tools

Mortgage Refinance FAQs

Should I refinance my mortgage?

 

There are many reasons why homeowners refinance their mortgages, but the main reason is that their mortgage was no longer providing them with benefits that coincided with their priorities. Priorities change and qualified homeowners can also change their mortgages to better assist them with their new goals.

 

How much time and money can I save by refinancing?

 

The amount of time and money you save will depend on the type of mortgage you choose to refinance into. If you are refinancing into a shorter term mortgage such as a 15-Year Fixed Interest Rate Mortgage from a 30-Year Fixed Interest Rate Mortgage, you will save many years and much more money in interest.

It is important to note that refinancing your mortgage will not change the principal balance of your loan, it will only change the interest rate or length of term.

 

How much will my new payment be?

 

This will depend on the type of loan you choose and how much your interest rate will be. If you choose to refinance into a loan with a shorter term, your new payment amount will be larger because you are choosing to pay more to get out of debt faster. Similarly, if you choose to refinance into a longer term mortgage, your new payment amount will be less.

 

Can I refinance to get rid of PMI?

 

Normally, no. PMI is required on all mortgages if less than 20% is put down for a down payment. So long as the loan balance is more than 80% of the original home value, you will be required to pay for PMI. The only exception to this rule is the VA Loan as veterans and active duty military members are not required to get mortgage insurance, no matter how little the down payment is.

 

How do you calculate your new mortgage payment and refinance rate?

 

Like your previous mortgage payment, your payment will consist of your principal, interest, property taxes, and homeowner’s insurance.  Depending on the mortgage you choose and your new interest rate, your payment amount will either increase or decrease.

For refinancing, a home appraisal is very important. An appraisal is done by a 3rd party and the appraiser will inspect your home to see if the home’s value has gone up or down. They will look at the value of neighboring homes and check to see if repairs and other features have been added to the home. If the home value has increased since the purchase, you have gained equity. If the value has gone down so low that you are underwater, you won’t be able to refinance.

Your Loan to Value ratio (LTV) affects the rate and type of loan you may qualify for. It shows what you owe on your mortgage against the home value. Having a low LTV is best because it can get you a better interest rate. If you have a high LTV, your refinance may require PMI.