Modeling a Real Estate Loan Refinance

The best way to model a refinance is typically to update the existing loan in the Liabilities section rather than create a new liability.

Open the existing liability and update the loan balance, interest rate, payment amount, term, and other details to reflect the refinanced loan.

If the refinance includes closing costs or cash-out proceeds, enter those separately as a one-time expense or cash inflow, depending on how the refinance is structured.