The primary purpose of the Refinance Analysis Report is to evaluate the costs and benefits of refinancing existing loans on real properties with newer and possibly more attractive loans.
However, it is possible to use the analysis to evaluate placing entirely new financing on a property or even refinancing other types of property.
The report supplies the answers to three primary questions:
How much, if any, equity will be released by virtue of this transaction?
What does the client have to earn, after-taxes, on the released equity in order to break even?
What does the client have to earn, after taxes, on the released equity in order to justify borrowing?
The Refinance Analysis includes three sections:
Table Report
Text Report
Graphs
To enter the rental, click on Portfolio | Assets | and fill out the appropriate Personal Residence or Rental Property form. After you have entered the information and saved the asset (click on Actions | Save, or type Ctrl+S), click on the Attach Liability button and fill out one loan window for each mortgage the client has against this property.
Click on Scenario | What-If Loans/Refinances. From the Actions Menu, select New Loan Instruction, and follow the forms presented by the wizard.
Now that you have both current and proposed (what-if) financing, click on Reports | Real Estate. At the bottom of the Available Properties Window, MasterPlan lists the three types of reports. Click on the circle beside Refinance. Click on Table for the table report, Text for the text analysis, or Graphs to create the various graphs.