Loan Refinancing Calculator

Loan refinancing means paying off your existing loan with a new one — usually at a different lender — on better terms, such as a lower interest rate. The goal is to reduce the monthly payment or shorten the repayment period.

Refinancing makes sense when the new rate is low enough that the savings on monthly payments exceed the one-time closing costs. The calculator shows the break-even point — if you plan to keep the loan longer than that, refinancing is worthwhile.

The calculator uses the annuity formula: R = P * r * (1+r)^n / ((1+r)^n - 1), where P is the loan balance, r is the monthly rate (annual rate / 12) and n is the number of months remaining. The result is a fixed, equal monthly payment.

The break-even point is the number of months after which cumulative monthly savings equal the closing costs. It is calculated as: closing costs / monthly saving. The sooner the break-even, the faster refinancing starts generating real benefit.

Typical costs include: lender origination fee, property appraisal fee, notary fees (for mortgage transfer), court registration fees and any prepayment penalty from your current lender. Sum all these and enter the total.

Yes. Mortgage refinancing in Poland requires transferring the mortgage lien to the new bank, which involves notary and court fees. Under the Mortgage Credit Act (2017), the prepayment penalty cannot exceed 3% for fixed-rate loans.

If the new rate is higher, the monthly payment increases and refinancing is not beneficial. The calculator shows this directly: monthly savings will be negative and the break-even point will be infinity.

The calculator uses the nominal annual interest rate. APR also includes fees — that is why you should enter all one-time closing costs in the dedicated field. Always compare APR across offers, not just the nominal rate.

The process typically takes 2 to 6 weeks: application, credit decision, property appraisal, notary deed, old lien removal and new lien registration. During this time you continue paying your current lender.

No — the results are estimates for informational purposes only. Actual figures depend on the specific bank offer, credit history, market conditions and individual contract terms. Always compare multiple offers and consult a mortgage advisor before refinancing.