Mortgage refinancing in Kansas City. Let's run the numbers.

When the goal is a lower payment

How long will it take to recover the closing costs?

I compare the actual loan and title costs with the monthly payment savings to find your break-even point: the number of months it takes to recoup those costs.

Prepaid property taxes, homeowners insurance and money to fund an escrow account aren't included in that loan-cost calculation. We still account for them when reviewing the cash needed at closing.

We compare principal, interest and any mortgage insurance consistently, so a change in taxes or insurance isn't mistaken for savings from the new loan.

If you expect to sell or refinance again before recovering the costs, a refinance for payment savings generally won't make sense. We'll also look at any change to your loan balance and payoff date.

Want to explore your own numbers? Use the refinance comparison calculator to compare payments, costs and remaining balances over the time you expect to keep the loan.

When the goal is consolidating debt

Let's look at your blended interest rate.

Your mortgage rate is one piece of the picture. I also look at the rates on the other debts you'd like to consolidate and calculate a blended rate, weighted by how much you owe on each debt.

Then we compare that with the proposed financing, including closing costs, repayment terms and the change in your combined monthly payments.

Sometimes a homeowner's biggest need is more breathing room each month. We can measure that benefit while also looking at how long the debt would take to repay and what it could cost over time.

Consolidating unsecured debt into a mortgage makes it secured by your home. A lower monthly payment doesn't erase the debt.