3. Congratulations, youre a homeowner! Youve purchased your home and have lived there for 5 years and 3 months. Every month you make your monthly payment and things are going well for you. Even better, the economy has changed and now interest rates are lower than they were when you purchased the home so you decide to refinance.

Determine the unpaid balance on your mortgage at this point in time. This will be the amount you need to borrow when you refinance your mortgage.