Housing
Switching the loan
Why this matters. A lower rate saves interest. A break cost is cash you pay to leave the old loan. This page counts the months until the interest saved covers the cost you type. It is not a reason to switch.
Current repayment, the new one, and how long the exit cost takes to come back. Same remaining term. Not a recommendation to switch.
Cost comes back in
Not recoveredExample rates you typed
$5,106 / mo is not lower than $4,492 / mo. The fee is not recovered by a smaller repayment.
- Interest over the term, before the fee
- $0
- That figure minus the exit cost
- −$186,529
Both rates are assumed to stay put for the rest of the term. They will not. A comparison rate, offset, or a shorter term is a different sum.
Next: Mortgage — The repayment on one rate, with extra payments.
What doctors often miss
The sketch divides the break cost you type by the difference in repayments. It does not know a lender’s discharge fee unless you type it.
Included / Not included
Included
- The two rates and the break cost you type · Example assumption, editable
Not included
- Discharge fees you did not type, cashback tax, and a rate that moves after the switch
- Insurance, stamp duty and inflation
Assumptions you can edit are the inputs on this page. This is a model, not a prediction, a tax assessment, or a recommendation.
A rough figure — not advice. Terms
Also
Advertisement — labelled, never inside the number.