Refinance Savings Calculator

Consider refinancing when: (1) the new rate is at least 0.5–1% lower than your current rate; (2) you have significant tenure remaining (10+ years); and (3) the break-even period (when cumulative savings exceed switching costs) is less than 2–3 years. A 1% rate cut on a ₹50 lakh outstanding loan saves approximately ₹60,000 per year.

Typical refinancing costs include: (1) Processing fee at the new bank — usually 0.25–1% of the loan amount; (2) Foreclosure charges at the existing bank — 0% for floating-rate loans (RBI mandated), up to 2–3% for fixed-rate loans; (3) Legal and documentation charges — ₹5,000–₹15,000; (4) MOD (Memorandum of Deposit) charges for transferring the property documents.

Break-even time depends on the rate difference and switching costs. For a 1% rate reduction on a ₹50 lakh loan with ₹30,000 in switching costs, you typically break even in 6–8 months. Our calculator shows the exact break-even month for your specific numbers.

Yes — this is called an internal rate reduction or balance transfer within the same bank. It avoids foreclosure charges but may involve a nominal conversion fee of ₹5,000–₹10,000. Many banks will reduce your rate if you show them a better offer from a competitor, especially if you have a good repayment track record.