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How do I Model a Refinance?

Nancy Gates avatar
Written by Nancy Gates
Updated over a week ago

When you model a refinance in the planner, enter the new TOTAL mortgage balance. The way the re-fi works in the Planner is:

- any open balance is paid off

- the new balance is then assumed

- if the new balance is less than their old balance, the planner will use money from their accounts for the difference. This simulates paying down more of the principal.

- if the new balance is more than their old balance, the planner will deposit the remainder money to their accounts. This simulates a cash-out refi.

The Lifetime Income Projection and Estimated Income, Drawdowns, and Debt charts will aggregate the 2 together - paying off previous debt and then opening a new debt.

The planner is not taking the aggregate amount from savings. You can verify this by looking at the annual change in Insights > Savings > Savings Balances to see how the projected account balances are changing in the year of your refinance.

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