Decision Playbook
One decision that needs to be made correctly — not a miniature financial plan.
Relevant household context comes first. Then only what actually affects the decision gets analyzed — no scenario count for its own sake, no unrelated modules along for the ride.
$400–$600
72 hours after complete intake
Written scope
One decision, worked through
Only the alternatives that actually matter get modeled.
Refinance the mortgage now, or recast it after the windfall?
- $420,000 balance at 6.1%, 24 years remaining
- $60,000 windfall applied to principal either way — $360,000 financed
- Refinance quote: 5.75% on a new 30-year term
- Plans to stay in the home 7–10 years
Refinance
$360,000 at 5.75% on a new 30-year term — about $2,101/mo, plus $9,000 in closing costs paid separately. By year 7: about $321,000 still owed and $147,000 paid in interest and closing costs.
Recast
$360,000 at 6.1%, keeping the existing 24-year payoff date — about $2,383/mo, for this lender's $250 recast fee. By year 7: about $302,000 still owed and $143,000 paid in interest and the fee.
Load-bearing assumption — is the priority lower required monthly cash flow, or preserving the shorter payoff horizon and minimizing total financing cost
Recommendation
Recast — by year 7 it leaves less owed and costs less in total, even with a higher required monthly payment.
What you receive
One page. Everything the decision required.
Every Decision Playbook ends in a card built this way — the reasoning is always visible, never just the answer.
Explainable Decision Card
Illustrative · Fictional Example
- Decision
- Refinance the mortgage now, or recast it after the windfall?
- Recommendation
- Recast the mortgage.
- Why
- Applying the $60,000 windfall to principal either way leaves $360,000 to finance. Recasting keeps the current 6.1% rate and the existing 24-year payoff date for about $2,383/mo and this lender's $250 fee. Refinancing to 5.75% only resets to a new 30-year term, lowering the payment to about $2,101/mo — but by year 7 the refinance leaves roughly $321,000 outstanding and $147,000 paid in interest and closing costs, versus about $302,000 outstanding and $143,000 paid under the recast. The lower refinance payment is financed by a longer amortization, not by a lower total cost.
- Key facts
- $420,000 balance at 6.1%, 24 years remaining · $60,000 windfall applied to principal either way, leaving $360,000 to finance · refinance quote: 5.75% on a new 30-year term, $9,000 closing costs paid separately · this lender's recast fee: $250.
- Key assumptions
- The household stays in the home at least 7 years. The refinance quote and the year-7 comparison both reflect the assumptions stated here, not a guarantee.
- Strongest alternative
- Refinance to the 5.75% quote — the required monthly payment is about $283 lower, which may matter more than the added long-run cost if near-term cash flow is the priority.
- Load-bearing variable
- Whether the household's priority is lower required monthly cash flow, or preserving the shorter payoff horizon and minimizing total financing cost.
- What would change this
- A refinance offer at a materially lower rate, a term closer to the remaining 24 years (for example 20–25 years), meaningfully lower closing costs, or a household priority that puts near-term monthly cash-flow relief first would favor refinancing instead.
- Next actions
- Confirm recast eligibility, fee, and payment terms with the current lender; confirm the refinance quote and closing-cost estimate before acting.
- Status
- Recommended — pending household confirmation.
Other decisions this fits
Cash vs. financing for a major purchase
Timing a large purchase
Home buy/sell sequencing
An employer benefit election
$400–$600 · delivered 72 hours after complete intake