Tool

Is it worth refinancing?

Compare your current loan against a new one with a better rate, including the switching costs, and see whether the savings justify it.

Fees, appraisal, closing costs of the new loan.
Total net savings
Interest saved minus switching costs
Current monthly payment
New monthly payment
Current remaining interest
Interest on the new loan
Switching costs
Verdict

Assumptions & method

  • Both loans are modeled with fixed payments (amortizing/French method) on the current balance.
  • Net savings = remaining interest on the current loan − interest on the new one − switching costs.
  • Watch out for stretching the term: it can lower your monthly payment and still cost you more in interest; the calculator reflects that.
  • It does not include prepayment penalties on the current loan; if there are any, add them to the costs.
FAQ

The essentials, in brief

When is refinancing worth it?
As a rule of thumb: when the new rate is clearly lower, you plan to keep the loan long enough to absorb the switching costs, and you don't stretch the term too much. The net savings from this calculator give you the verdict for your case.
What costs does refinancing have?
The new loan's origination fee, an appraisal, and on mortgages the notary and registration costs for the new lien. In Mexico some states waive or reduce fees when the mortgage creditor is substituted: ask before assuming the full cost.
Can I refinance with Tunton?
Yes: if you have an expensive loan and solid collateral, we can structure the substitution. Message us on WhatsApp with the balance, the current rate and the collateral.
Next step

Tell us about your deal

Tell us how much you need and what collateral you can offer. We’ll tell you frankly whether it’s viable and how we’d structure it.

Request via WhatsApp