Refinancing and Early Repayment: When Does It Pay Off?
How to compare switching costs with interest savings and what contracts allow.
4 min read · Loans & Credit
Repaying early or switching to a cheaper loan can save interest.
Early repayment
Consumer credit law allows early repayment with a rebate of interest. Check contract conditions and any fees.
Example with default values. Open the calculator →
Refinancing
- Compare new rates with the old one.
- Include fees and penalties.
- Check the break-even time.
Mortgages
For fixed-rate mortgages, early exit triggers a penalty equal to the interest loss of the bank. Consider waiting for the end of the term or using a partial payment where the contract allows it.
Estimate your savings with the early repayment calculator.