The term extension trap

A refinance can lower your monthly payment by stretching the loan out. That can be a valid cashflow choice—but it often increases total interest. This page shows what to check.

What to compare
  • Does the term get longer than your current months remaining?
  • Does total cost go down, or up?
  • Is break-even reachable (fees paid back in time)?
A common pattern

Small APR drop + longer term + meaningful fees = payment down, but total cost up.