Mortgage Refinance Calculator
Evaluate the profitability of refinancing your mortgage
What is Mortgage Refinance?
Mortgage refinance, also called loan renegotiation, consists of replacing your current mortgage with a new loan at a more advantageous rate. The main objective is to reduce the total cost of your loan by taking advantage of falling interest rates in the market. Two options are available: - Internal renegotiation: You stay with your current bank which agrees to lower your loan rate. Fewer fees but potentially less savings. - External buyout: You have your loan bought out by a competing bank. More fees but potentially better conditions.
When Should You Refinance Your Mortgage?
Significant Rate Drop
A difference of at least 0.7% between your current rate and the new proposed rate is recommended.
Sufficient Remaining Term
The more years you have left to repay, the greater the savings. Ideally: 10 years minimum.
High Remaining Principal
A remaining principal above €70,000 makes it easier to recoup the fees.
Stable Financial Situation
Your borrower profile must allow you to obtain an advantageous rate from banks.
What Fees to Expect for Refinancing?
Early Repayment Penalties (IRA)
IRAs are capped by law at 3% of the remaining principal or 6 months of interest (whichever is lower).
Processing Fees
The new bank charges processing fees for your application. Variable amount: €500 to €1,500.
Guarantee Fees
If you change banks, you must pay for new guarantees (mortgage, surety). Estimated cost: 0.5 to 1.5% of principal.
New Borrower Insurance
During an external buyout, you must take out new insurance. Thanks to the Lemoine Law (2022), you can switch insurance at any time, free of charge — delegation can reduce costs by 30 to 50%.
Alternatives to Refinancing
If refinancing is not profitable in your situation, several alternatives exist: - Internal renegotiation: Ask your bank to lower your rate - Payment modulation: Some contracts allow you to temporarily increase your payments - Partial early repayment: Repaying part of the principal reduces future interest - Change borrower insurance: Since the Lemoine law (2022), you can change insurance at any time
Frequently Asked Questions
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