Costs versus monthly savings
For illustration, $6,000 in nonrecoverable costs divided by $200 in comparable monthly savings is 30 months. Staying less than that may leave the costs unrecovered.
REFINANCE · MASSACHUSETTS & NEW HAMPSHIRE
Make the next loan work toward your goal.
A lower payment, a different term or access to equity? Start with what you want to accomplish, then compare the costs of getting there.
Talk about refinancing →LET’S TALK ABOUT YOUR NEXT STEP
Request a call.
Enter your name, email and phone number, choose your language and reason for contacting us, and request a call.
Open the contact form separately →Three steps to evaluate a refinance.
- Name the goal.
Explain what you want to change about your current loan and how long you expect to keep the property.
- Compare the full picture.
Look at closing costs, the new balance, monthly payment and remaining term—not the advertised rate alone.
- Ask for a written comparison.
Compare keeping your current loan with the proposed refinance over the same time period.
A refinance replaces the existing mortgage. Savings and approval depend on the loan, costs and lender review.
BEFORE YOU DECIDE
Three things to put side by side.
Today’s payment versus total cost
Restarting a longer term can lower the payment while adding years of interest. Compare the loan balance and money paid at the same future date.
Equity versus a larger loan
Taking cash out can increase the balance and the costs of borrowing. Ask how the new payment and remaining equity change.
The simple break-even example leaves out balance changes, taxes and the time value of money. It is a conversation starter, not a savings forecast.
What to have in mind when we talk.
Your current interest rate, approximate balance, remaining years and your main goal are useful starting points. Keep documents and sensitive financial information for the mortgage company’s secure process.
Request a refinance conversation →Questions to ask the lender
- What fees and points will I pay?
- Are any costs added to the new loan balance?
- How do the rate, APR and term compare?
- Will existing assistance need to be repaid?
- How much would I owe and pay over the same period if I keep my current loan?