How to Model Future ReFi of Current Mortgage?

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I plan to retire in approx 3 years and want to model refinancing my mortgage at that time (after having made extra payments during those years). I don't see how to do that in ESP. The primary home section asks for current mortgage and has a section for a change of primary home which assumes selling the current home and buying a new one. But that is not what I want to model. I want the program to reflect my current mortgage but then model refinancing it 3 years out at retirement. How?

Comments

dan royer's picture

Of course modeling the refinance NOW is just a matter of removing the current mortgage and replacing it with the terms of the new mortgage.

Modeling the change in the future is not as simple.

You could model the sale of the home (make sure that in Assumptions you fist set the sale of property commission to 0%) and then model your new mortgage (plus any closing costs if you like) in the sale of the new home. Unfortunately, the value of the house you have entered will not be the same value three years from now (because you are not wanting to make a profit or take a loss on this "sale"). So perhaps look at the housing report and see what the mortgage value is at the end of the year three years from now, value your current home at that amount, and see if then there is no cap loss or gain.

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