Sasto Karja

Refinance Savings

If another bank offers a lower rate on your outstanding balance, switching can save real money, but prepayment penalties and a new processing fee eat into it. This tool nets everything out and shows how many months it takes to break even.

Frequently asked questions

What does switching cost?+

Typically a prepayment penalty from the old bank (0 to 2% of outstanding) plus the new bank's processing fee (0.5 to 1%), valuation and legal charges.

When is refinancing worth it?+

When the interest saved over the remaining tenure comfortably exceeds the switching cost, and you break even within a year or two. Small rate differences on short remaining tenures rarely pay off.

Can I refinance to a longer tenure?+

Yes. A longer tenure lowers the EMI but usually increases total interest, so compare both the monthly and the total saving.