We currently have a 7/1 ARM loan with about 5 years before the rate becomes variable. I want to model a scenario in which we refinance the loan at a future date to a new fixed-rate mortgage. The goal would be to not cash out any value from the property, but to simply exchange the existing interest rate and term for another.
I do not see a direct way to input the simple expected value of the loan in the Build > Expenses > Personal Property > New Loans section of the software. Rather, there is "Amount (% of Equity)" field. Do I put 0% (which actually flips to 1% despite a prompt claiming "Min is 0%") to model a no cash-out refinance? That seems to result in the lowest value for "Refinance Cash Out" when looking at the tabulated values under Build > Expenses > Personal Property > Cash Flow.
As an aside, it might be nice to give the user the option to select something equivalent to a no cash-out refinance or to truly allow 0% as an input to the Amount (% of Equity) field if that's the correct use of that field for a no cash-out refinance.
Hi, last night's release fixed an issue with entering 0% for refinance "amount as % of equity" which was correct for home equity loans but not correct for a refi's.
If you go to that page today, it has been updated to tell you how to do either rate/term refi (enter 0% for Cash Out % of Equity) or Cash Out refi (enter Cash Out % >0). Click on the little circled i on the field label for more info.
Hope that is helpful,
Charlie
@ritchell Howdy. We've looked into this and found an issue that has now been resolved (see post from Charlie Stone). I've tested it and it does now allow you to simply specify your new rate and term with no cash-out. Thanks for your post!
Stuart
@matthews51 I've been trying to follow this same workflow, and despite adding in a refinance, I'm getting both an error and incorrect behavior. The error says "You have two or more purchase and refinance loans for the same property and the same origination date: 01/01/2022. The duplicate loan(s) will be ignored. Please review and fix." The origination date for the refi is listed as 2029, so they shouldn't be colliding. And, when I look at the amortization tables, the original loan ends and is paid off in 2029, but the refinance table shows zeroes in every field from now to eternity, rather than starting as a new loan in 2029. Any ideas? I got it to work for a primary home, but this is for a rental property and I can't get it to work.