REFINANCE / BALANCE TRANSFER

When does refinancing actually break even?

Compare the current loan with a new offer after switching costs, exit charges, cashback and term changes. Carrowmont separates the pure rate effect from the lender's proposed repayment term.

Durable break-evenSame-term rate checkHolding-period resultNo lender recommendation

Your financial inputs stay in this browser by default.Only reusable mortgage facts may be saved locally for the Decision Centre. Offer rates, switching fees, cashback, holding periods and results are not stored in the shared profile.

YOUR ASSUMPTIONS

Compare your current loan with one offer

1. Current mortgage / home loan

Carrowmont derives the current modeled repayment from the balance, rate and remaining term so the rate-only comparison stays internally consistent.

Outstanding home loan balance

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Current annual interest rate

Remaining loan tenure - years Additional months Scheduled repayment frequencyThe same repayment frequency is used for both current and proposed loans in V1.

2. Proposed refinance / transfer offer

Enter the offered rate and proposed new term. Carrowmont does not fetch or rank lender offers.

New offered annual interest rate

Proposed new tenure - years Additional months

3. Switching costs and incentive

Enter the actual amounts you want modeled. Carrowmont does not invent local penalties, legal fees or lender rules.

Switching / processing / legal / valuation fees

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Existing lender exit / prepayment charge

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Cashback / incentive

₹

Enter only the amount you want treated as retained at completion. Clawbacks, tax and eligibility conditions are not modeled. How are the switching fees paid?Financed fees increase the new principal and therefore also create interest.

4. Expected holding period (optional)

Use this if you expect to sell, refinance or switch again before the modeled loan finishes.

Show the modeled result at my expected holding periodThis assumes both paths are settled at that point. Property value, selling costs and a future replacement loan are not modeled.

Holding period - yearsAdditional months

THREE-PAYMENT COMPARISON

Separate the rate effect from the term effect.

The middle column holds principal and remaining term constant. The proposed refinance column uses the actual new term and adds switching fees to principal only when you choose to finance them.

Measure	Current loan	New rate · same term	Proposed refinance
Starting principal	—	—	—
Interest rate	—	—	—
Remaining / proposed term	—	—	—
Repayment per cycle	—	—	—
Lifetime interest	—	—	—
Modeled payoff horizon	—	—	—

MODELED REFINANCE ADVANTAGE OVER TIMEComplete the comparison to see the cost path.

AdvantageZero / break-even

Visible results above and the comparison table remain the accessible source of truth; no hover is required.

HOW THE BREAK-EVEN MODEL WORKS

Compare borrowing cost, not just payments.

Principal repayment moves debt from outstanding to repaid; it is not itself a borrowing cost. Carrowmont compares cumulative interest plus entered switching costs and cashback.

Calculation sequence

Model the current loan from balance, rate, remaining term and repayment frequency.
Model the new rate over the same remaining term using the same principal. This isolates the rate effect.
Model the proposed refinance using the lender's proposed term and any financed switching fees.
At each repayment period, compare current-loan interest with refinance interest plus net switching cost.
Call break-even only when the advantage becomes non-negative and does not turn negative again through the full modeled horizon.
If you enter a holding period, show the modeled saving or additional cost at that checkpoint separately from lifetime economics.

CONTINUE THE MORTGAGE JOURNEY

Keep each decision mathematically separate.

Prepayment vs InvestingCompare using extra cash against the loan with investing the same planned cash.Mortgage Decision CentreReturn to the four mortgage decisions and see what is live or planned next.

FAQ

Questions about refinance break-even

Why show a new-rate payment using my old remaining term?

It isolates the rate effect. If the lender also stretches the term, the actual proposed payment can fall for two different reasons: the rate and the longer repayment horizon.

Why are financed fees still counted as a cost?

Financing changes when the fee is paid, not whether it exists. The fee is added to the new principal and also creates additional interest.

Why can a refinance cross break-even and later become unfavorable?

A long term can produce early interest savings but accumulate more interest later. Carrowmont therefore uses a durable break-even that remains non-negative through the full modeled comparison horizon.

Does this tell me whether I should refinance?

No. It is an educational borrowing-cost comparison under the assumptions you enter. Affordability, eligibility, lender terms, taxes, legal rules and future rate changes require separate consideration.