Current payment
Establish the current principal, interest, taxes, insurance, and applicable mortgage insurance.
Refinance savings
Measure the savings against what the refinance actually costs.
Monthly savings can look attractive while hiding a longer loan term, higher balance, financed costs, or a break-even period that does not fit the homeowner's plans.
New payment
Estimate the proposed payment using the new rate, balance, term, and program.
Transaction costs
Include closing costs whether paid in cash, financed, or offset by credits.
Break-even
Determine when cumulative monthly savings recover the transaction cost.
Future balance
Compare remaining principal under both loans at meaningful future dates.
Time horizon
The refinance should make sense for how long the homeowner expects to keep the loan or property.
Casas Equity