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A practical mortgage refinance checklist
A refinance replaces an existing mortgage. Start with what you want to change—and compare the full cost of making that change.
Write down the goal
A different payment, a different term, or access to equity can lead to different choices. Bring your current statement so a professional can compare the remaining balance, rate, term, and mortgage insurance.
Compare costs over the same period
Look at closing costs as well as monthly payments. Ask how much principal you would owe after the same number of years under each option. A longer term can reduce the payment while increasing lifetime interest.
Ask when the costs are recovered
Dividing upfront costs by monthly savings gives a simple cash-flow break-even estimate when there are positive savings. It is only a starting point: financed fees, changes in the term, and the remaining balance also matter.
Prepare these questions
- What costs are paid now, and which are added to the loan?
- How does the new term compare with my remaining term?
- What happens to mortgage insurance?
- How would selling sooner change the comparison?
Ask the lender for a written comparison based on your circumstances.
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