Home Mortgage Refinance Calculator - Capital Bank (2024)

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For most buyers, obtaining a mortgage and buying a home is the largest financial undertaking they will complete in their lifetime. Homes appreciate in value and are typically considered a sound investment for most applicants.

But committing to repay a large amount of money can be confusing. Let’s look at the most commonly asked questions that pop up during the process.

Refinancing a mortgage is when you replace your current mortgage with a new one. There are many reasons to refinance a mortgage but the most common are changing loan terms, locking in a better interest rate, lowering your monthly payment, or pulling cash out of your home equity.

Depending on your particular situation and goals, refinancing can be a good option. Talk to one of our experienced mortgage lenders to see if refinancing is right for you.

This is another question that is dependent on your specific situation and goals. Typically, when current interest rates fall below the interest rate of your mortgage, it may be a good time to consider a refinance. There are many other things to consider however, so we recommend speaking with a mortgage professional.

Capital Bank makes refinancing a mortgage fast and easy. Simply apply to refinance your mortgage and our lenders will consult you with the best refinance options for your needs and we will handle it from there.

There are many variables that can determine how long it takes to refinance a mortgage, but generally speaking, it takes around 30 – 45 days to refinance a mortgage.

Refinancing a mortgage can vary in price depending on the amount and type of refinance option you choose. Most refinances cost around 2% to 6% of the loan amount.

There are some no-cost refinance options out there that allow you to finalize a refinance without closing costs. Most of these options will require you to choose a higher interest rate or larger loan balance.

There are no legal limitations to the amount of times you can refinance a mortgage. Check with your mortgage lender to see if they have any limitations on the amount of times you can refinance a mortgage.

Generally, your mortgage lender will ask you for your pay stubs, tax returns/W-2, credit report, and a review of your assets and liabilities. Check with your mortgage lender to ensure you have all of the required documents.

To qualify for a refinance, take a look at your debt-to-income ratio. The new monthly mortgage payment shouldn’t be more than 30% of your monthly income. To refinance $400K over a 30-year fixed term with an interest rate of 3.5%, you’ll need an income of approx. $6000/month. (This is an estimated example – rates and other factors are subject to change.)

To qualify for a refinance, take a look at your debt-to-income ratio. The new monthly mortgage payment shouldn’t be more than 30% of your monthly income. To refinance $200K over a 30-year fixed term, you’ll need an income of approx. $5,200/month. (This is an estimated example – rates and other factors are subject to change.)

With a 70k salary, you may be able to afford a house from anywhere between $200,000 to $350,000 (this is an example estimate – factors such as debt can affect how much home you can afford). Instead of thinking of the total price tag of a home, look at whether you can afford to borrow the money it will cost and can repay the loan in monthly payments.

With a 50k salary, you can likely afford a house anywhere within the range of $180,000 to $300,000. It will depend on several factors such as your location, credit score, current debts, mortgage rates, down payment, and others.

With an income of 80k a year, you can afford a home within the price range of $240,000 to $320,000. Based on a 3.5% interest rate and 10% down payment, you can buy a $272,000 home with a $1,599 monthly mortgage payment. Please keep in mind, total debt-to-income ratio, credit score and other factors may influence the price of the house you can afford. This estimate only includes the principal and interest amounts. Actual payment obligation will be higher.

With a 60k salary, you may be able to afford a mortgage in the range of $120,000 to $150,000. The general rule of thumb is that you can afford a mortgage of 2 to 2.5 times your annual income.

In conclusion, the primary factors for mortgage approval are credit score, income, existing debt, and down payment. As a savvy consumer, you can run scenarios with various inputs to find the right mortgage lending solution for you.

Once you procure a mortgage, be sure to pay your payments on time and include extra principal payments as available. These actions will ensure you are able to refinance should mortgage rates become more desirable.

Home-ownership is a journey and a dream for most Americans. Use the research we’ve compiled to make the most of your adventure toward owning a home.