Bankrate Current Refinance Calculator With Extra

Refinance EMI Formula:

\[ EMI_{new} = \frac{(P - E) \times R \times (1+R)^{(N - M)}}{(1+R)^{(N - M)} - 1} \]

Original Principal (P):

Extra Payment Amount (E):

Current Annual Interest Rate:

Original Loan Tenure (N):

months

Months Already Paid (M):

months

New EMI After Refinancing:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is the Refinance EMI Calculator?

The Bankrate Current Refinance Calculator with Extra Payments helps determine your new EMI when refinancing a loan after making additional principal payments. It calculates the adjusted monthly payment based on your remaining balance and current interest rates.

2. How Does the Calculator Work?

The calculator uses the refinance EMI formula:

\[ EMI_{new} = \frac{(P - E) \times R \times (1+R)^{(N - M)}}{(1+R)^{(N - M)} - 1} \]

Where:

\( P \) — Original principal amount
\( E \) — Extra payment amount
\( R \) — Monthly interest rate (annual rate / 12)
\( N \) — Original loan tenure in months
\( M \) — Months already paid

Explanation: The equation calculates the new monthly payment based on the reduced principal (after extra payments) and remaining loan term at the current interest rate.

3. Importance of Refinance Calculation

Details: Calculating your new EMI after refinancing helps you understand potential savings, budget for new payments, and compare different loan options.

4. Using the Calculator

Tips: Enter your original loan amount, any extra payments made, current interest rate, original loan term, and number of payments already made. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: When should I consider refinancing?
A: Consider refinancing when interest rates drop significantly (typically 0.5-1% lower than your current rate) or when you want to change your loan term.

Q2: How do extra payments affect refinancing?
A: Extra payments reduce your principal faster, which can lead to lower payments when refinancing or allow you to pay off the loan sooner.

Q3: What costs are involved in refinancing?
A: Refinancing typically involves closing costs (2-5% of loan amount), appraisal fees, and possibly other lender fees.

Q4: Should I refinance to a shorter or longer term?
A: Shorter terms save on interest but have higher payments. Longer terms reduce monthly payments but increase total interest paid.

Q5: How accurate is this calculator?
A: This provides a good estimate, but actual refinance terms may vary based on credit score, lender policies, and other factors.