Basics When you are looking to refinance you may collect loan offers from several lenders.
You can compare different loan offers by:

• loan amount
• loan term
• interest rate
• closing costs

One of the most basic things to consider with a refinance is your new payment size.
You may be refinancing to lower your monthly payment.
This type of refinance is called a "rate and term" refinance because you are changing either the interest rate or the loan term to get a lower monthly payment.
If you are looking to cash out you will also need to figure out what your future payment will be.
You may be able to get a lower payment even if you are taking cash out.
This can happen with a combination of a lower rate, different loan type, and a longer loan term.
A mortgage calculator can help you calculate your monthly payment on:

• a regular loan
• an interest only loan
• a minimum payment option loan

A regular loan is one where you pay both interest and principal.
This slowly pays the loan off over its life.
An interest only loan is a lower payment because you are paying only the interest owed and are not paying down the principal.
Your loan size will remain the same if you are paying at the interest-only level.
A minimum payment option loan allows you to pay less than the interest only level.
This is one of the lowest possible monthly payments you can get.
When you make a minimum payment the difference between that payment and the interest only payment is added onto the principal of the loan.
There are many free mortgage calculators available online to help you.