Should You Refinance? Calculate the Break-Even Point
Calculate how many months until refinancing pays for itself. Compare your current vs new mortgage terms.
भारत में
Home loan balance transfer: 0.5-1% lower rate possible। ₹30 lakh balance, 1% reduction, 15 years: ₹2.5-3 lakh savings! Processing fee: ₹10,000-30,000। Break-even: 3-6 months usually। SBI, HDFC, Kotak: competitive transfer rates।
When Worth It
0.5%+ rate difference AND 5+ years remaining। BankBazaar, PaisaBazaar: compare rates online। Negotiate with current bank first — they may match।
A frequently overlooked refinance strategy: keep making your old (higher) payment after refinancing to a lower rate. The difference goes entirely to principal. A $300K refi from 7% to 6% saves $200/month. Continuing to pay the old amount means $200/month in extra principal — paying off the mortgage 7-8 years early.
