Loan payment and early repayment
Estimate a fixed-rate loan's equal monthly payment. The optional prepayment mode shows how extra principal can shorten the loan term.
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Mortgage refinance fees and recovery time
Compare two rates on the same remaining loan principal and term, including one-time fees, to see the net cost difference.
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Less paid over the remaining term after refinancing
258,234.7TWD
The main answer states how much less or more you would pay over the same remaining term, after the one-time fees. Recovery time is an estimate, not a bank promise or a recommendation to refinance.
Estimated old monthly principal and interest26,495.14 TWD/month
Estimated new monthly principal and interest25,294.17 TWD/month
Monthly savings (negative means more paid)1,200.98 TWD/month
One-time refinancing fees paid in cash30,000 TWD
Estimated months to recover fees24.98 months
Old loan interest over the remaining term1,358,834.72 TWD
New loan interest over the remaining term1,070,600.02 TWD
Worked steps
- 500 × 10000 = 5000000
- 3 × 10000 = 30000
- (26495.14 − 25294.17) × 240 − 30000 ≈ 258234.70
Both loans use the same remaining principal and months, fixed annual interest rates and equal end-of-month principal-and-interest payments. Monthly rate i=annual percent/1200; payment=P×i/[1−(1+i)^(-n)], or P/n at zero interest. Net term savings=(old payment−new payment)×remaining months−cash fees. If monthly savings are positive, estimated fee recovery time=fees/monthly savings. Without a payment reduction there is no recovery period; a recovery time beyond the remaining term is explicitly marked. Multiply the principal and fee inputs by 10,000 to get TWD. Fees are paid separately, not financed. Examples are hypothetical, not bank offers. The model excludes cash-out, changed terms, grace periods, other repayment methods and actual future variable-rate paths. It does not recount past interest or compare discounting, opportunity cost, tax or ownership-cost changes. Include all known one-time lender, registration, valuation, professional and early-repayment charges in the fee total. No bank rounding or statutory APR is computed, and savings are not guaranteed.
Method and scope
Both loans use the same remaining principal and months, fixed annual interest rates and equal end-of-month principal-and-interest payments. Monthly rate i=annual percent/1200; payment=P×i/[1−(1+i)^(-n)], or P/n at zero interest. Net term savings=(old payment−new payment)×remaining months−cash fees.
If monthly savings are positive, estimated fee recovery time=fees/monthly savings. Without a payment reduction there is no recovery period; a recovery time beyond the remaining term is explicitly marked. Multiply the principal and fee inputs by 10,000 to get TWD. Fees are paid separately, not financed.
Examples are hypothetical, not bank offers. The model excludes cash-out, changed terms, grace periods, other repayment methods and actual future variable-rate paths. It does not recount past interest or compare discounting, opportunity cost, tax or ownership-cost changes. Include all known one-time lender, registration, valuation, professional and early-repayment charges in the fee total. No bank rounding or statutory APR is computed, and savings are not guaranteed.
References:OpenStax: fixed-term loan payment formula、Freddie Mac: refinance fee recovery and term limitations、CFPB: lower payments and total borrowing cost
What this helps you do
Compare whether monthly payment savings can cover refinancing fees. The new and old loans use the same outstanding principal and remaining months, so a longer term cannot create a misleading impression of savings.
What to enter
Use the principal and months remaining on your current statement, the old and proposed fixed annual rates, and total one-time fees. Principal and fees use TWD 10,000 units: 500 is TWD 5 million and 3 is TWD 30,000. Fees are paid separately in cash.
How it is calculated
For principal P, monthly rate i=annual percent/1200 and n remaining months, payment=P×i/[1−(1+i)^(-n)]. At zero interest use P/n. Monthly savings=old payment−new payment. Net savings=monthly savings×n−cash fees. When monthly savings are positive, fee recovery time=fees/monthly savings.
Worked example
Synthetic example: TWD 120,000 remaining for 12 months, old rate 12%, new rate 0%, and TWD 1000 fees. Old payment is about TWD 10,661.85 and new payment TWD 10,000. Monthly savings are about TWD 661.85; net savings over the term are TWD 6942.26, with estimated fee recovery in 1.51 months.
Understanding the answer
The main answer states less paid, more paid or equal cost over the same remaining term. A lower payment may not recover the fees. If recovery exceeds the months left, the page says the fees cannot be recovered within the term. Fractional months are only an estimate, not a guaranteed payment date.
Scope and limitations
This fixed-rate, equal-monthly-payment model excludes cash-out, changed terms, grace periods, other repayment methods and future variable-rate paths. Past interest is excluded. Tax, insurance differences, discounting and opportunity cost are not compared. These are hypothetical TWD calculations, not a bank offer, approval or statutory APR. Confirm all fees and terms with the lender before using the comparison; save the assumptions for later review.