Refinancing
Is it worth moving your loan?
You put a new offer, with the cost of moving, next to today's loan. See the installment, total interest, the saving after costs and the month from which the move pays for itself.
Example values: replace them with yours and press Calculate.
On the figures you entered, moving saves RON 34,218.04 in total
New installment
RON 1,289.58
against RON 1,450.07 now
Monthly difference
RON 160.49
You pay less every month
Total saving after costs
RON 34,218.04
What you pay now minus what you pay after the move, costs included
The costs are recovered
Month 27
—
| Today's loan against the new loan | Now | After the move |
|---|---|---|
| Monthly installment | RON 1,450.07 | RON 1,289.58 |
| Remaining installments | 240 | 240 |
| Annual rate | 7.5% | 6% |
| Total interest remaining | RON 168,016.26 | RON 129,498.22 |
| Moving costs | — | RON 4,300.00 |
| Total to pay from here on | RON 348,016.26 | RON 313,798.22 |
- Cumulative saving after costs
Move the pointer over the chart or use the ← → arrow keys to see the values.
- Today's loan
- The new loan
Move the pointer over the chart or use the ← → arrow keys to see the values.
The link carries your figures in its address: anyone who opens it sees the same calculation.
How it is calculated
The calculator compares two scenarios for the same debt: you carry on with today's loan, or you close it and take a new one for the same amount, with the offer's rate and term. For each scenario we rebuild the repayment schedule month by month.
Moving costs money: what the new bank charges (arrangement, valuation, insurance) and, possibly, the old bank's commission. You can pay them out of pocket or add them to the new loan. The monthly saving adds up month by month; the month in which the total passes the costs is the break-even month.
The total saving is the sum of the remaining installments on today's loan minus the sum of the new installments, costs included. If the offer has a longer term the installment falls, but total interest can rise: that is why the table shows the interest, not just the installment.
Questions about refinancing
Which costs should I enter?
Everything you pay once to move the loan: an analysis or arrangement fee, the property valuation, the insurance required, notary and land-registry fees. The commission owed to the old bank is entered separately, as a percentage.
Why does the new term matter?
A longer term lowers the installment but means more months of interest. To see whether moving is really worth it, first try the same term as the one remaining.
Does the calculation include rate changes?
No. Both rates are assumed to stay the same throughout. If the offer is fixed for only a few years, also try the rate that applies after the fixed period, to see the more cautious case.
Can I refinance with the same bank?
Sometimes, as a renegotiation of the rate, often with lower costs. Enter the costs the bank quotes you and compare with an offer from another bank.
More loan calculators
- PrepaymentHow much you shorten the loan or lower the installment if you pay a sum now, with a commission and two scenarios side by side.Open →
- Extra monthly paymentHow much you save by adding the same amount to every installment.Open →
- Close the loanWhat to bring to the bank to close the loan now, with the commission and accrued interest.Open →
- Payment planSeveral early payments over time: a monthly amount, a yearly bonus and payments on dates you choose.Open →
Indicative calculation. Final figures are confirmed with your bank/lender (RO law OUG 50/2010: you have the right to early repayment).