Question 1

When is it worth refinancing?

Accepted Answer

Refinancing is typically worth it if you can save at least 0.5% on your interest rate and the switching costs are recovered within 2 years. On a $500,000 loan, a 0.5% rate drop saves about $2,500/year in interest, easily covering typical switching costs of $1,000-$3,000.

Question 2

What are the costs of refinancing?

Accepted Answer

Common costs include discharge fees from your current lender ($150-$400), application fees for the new loan ($0-$600), valuation fees ($0-$300), settlement/legal fees ($200-$500), and potentially break costs if you're on a fixed rate.

Get notified when we add new calculators