Question 1

When is refinancing beneficial?

Accepted Answer

General rule: the new rate should be at least 1.5–2% lower than the current one. But it is more important to look at the total difference in payments accounting for all refinancing costs. The calculator computes exactly this.

Question 2

What is the refinancing break-even point?

Accepted Answer

This is the month when accumulated savings on monthly payments cover the one-time costs (early repayment fee, notary, valuation). If you plan to repay the loan before the break-even point — refinancing is not beneficial.

Question 3

Should I extend the term when refinancing?

Accepted Answer

Extending the term reduces the monthly payment but increases total overpayment. Optimal — refinance for the same or shorter term. Extension is justified only if the current payment creates financial strain.

Question 4

Is there a penalty for early repayment in Uzbekistan?

Accepted Answer

Under Uzbekistan law, early repayment is permitted without penalties for individuals. However, some banks specify a fee in the contract — check with your bank. In the calculator, the early repayment fee field can be left as 0 if it does not apply.

Question 5

What to include in processing costs?

Accepted Answer

Notarization (if required), independent collateral valuation, insurance, registration fees, bank origination fee for the new loan. Sum them all up and enter the total figure.

Refinancing Calculator

How the refinancing calculator works

Frequently Asked Questions