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Refinancing
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Refinancing your Mortgage
Refinancing a mortgage costs money. However, if a homeowner can refinance at a lower interest rate, it may be beneficial to incur the current costs of refinancing due to the savings over the long term. This application presents an analysis of refinancing a mortgage to see if it is worthwhile to incur the costs to refinance. The approach used in this application involves calculating the comparable payment based on the remaining term of the original mortgage. It is important to note that the payment is calculated using the remaining term because a new payment can be lower simply because the term is longer. Therefore, even though a payment may be lower, because of a longer term, refinancing may not be beneficial because the consumer pays more in the long term.
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