1. What is the Refinance EMI Calculator?

This calculator helps determine your new monthly payment (EMI) when refinancing a mortgage after making extra payments. It considers your remaining principal, current interest rate, and remaining loan term.

2. How Does the Calculator Work?

The calculator uses the refinance EMI formula:

Where:

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

Explanation: The formula calculates the new equated monthly installment based on the reduced principal and remaining loan term after extra payments.

3. Importance of Refinance Calculation

Details: Calculating your new EMI helps in financial planning when considering refinancing options. It shows how extra payments can reduce your monthly burden or shorten your loan term.

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. Ensure months paid is less than original tenure.

5. Frequently Asked Questions (FAQ)

Q1: When should I consider refinancing?
A: Consider refinancing when interest rates drop significantly (usually 1-2% below your current rate) or when you want to change your loan term.

Q2: How do extra payments affect my refinance?
A: Extra payments reduce your principal faster, which can lower your new EMI or shorten your loan term when refinancing.

Q3: What's the benefit of refinancing?
A: Potential benefits include lower monthly payments, shorter loan term, switching from adjustable to fixed rate, or cash-out options.

Q4: Are there costs to refinancing?
A: Yes, refinancing typically involves closing costs (2-5% of loan amount). The calculator doesn't account for these fees.

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