When should I consider refinancing my home loan?

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.

What are the costs involved in refinancing a home loan?

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.

How long does it take to break even after refinancing?

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.

Can I refinance my home loan with the same bank?

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.

Free Tool

Refinance Savings Calculator

Calculate how much you could save by refinancing your home loan, including processing fees and break-even analysis.

Your Loan Details

Outstanding Loan Amount (₹)

Remaining principal amount

Current Interest Rate (%)

Your existing home loan rate

New Interest Rate (%)

Expected rate after refinancing (market min: 7.10%)

Remaining Tenure (Years)

Years left on your loan

Processing Fee (%)

New lender's processing fee (typically 0.25%–1%)

Savings Analysis

Current EMI

₹0

New EMI

₹0

Monthly Savings₹0

Lifetime Interest Savings₹0

Switching Cost (Processing Fee)-₹0

Net Savings₹0

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