Singapore Mortgage Refinancing Calculator
Monthly Savings: $285
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| Current | New | Savings | |
| Payment Comparison | SGD | SGD | SGD |
| Monthly Payment | $2,530 | $2,245 | $285 |
| Interest Rate | 4.5% | 3.8% | 0.7% |
| Remaining Balance | $400,000 | $400,000 | - |
| Total Interest (Remaining) | $207,200 | $138,800 | $68,400 |
| Break-even Analysis | Time | Cost | Benefit |
| Refinancing Costs | - | $8,000 | - |
| Break-even Point | 28 months | $8,000 | $8,000 |
| Net Savings (5 years) | - | - | $9,100 |
| Net Savings (Full Term) | - | - | $60,400 |
| Refinancing Recommendation | Status | ||
| Should You Refinance? | Yes | ||
| Risk Level | Low | ||
| Payback Period | 2.3 years | ||
| Annual Savings | $3,420 | ||
Refinancing Savings Analysis
| Year | Cumulative Savings | Net Benefit |
|---|---|---|
| 1 | $3,420 | -$4,580 |
| 2 | $6,840 | -$1,160 |
| 3 | $10,260 | $2,260 |
| 5 | $17,100 | $9,100 |
| 10 | $34,200 | $26,200 |
| 20 | $68,400 | $60,400 |
The Singapore Mortgage Refinancing Calculator helps homeowners evaluate whether refinancing their current mortgage will save money and determine the break-even point for refinancing costs.
Mortgage Refinancing in Singapore
Refinancing involves replacing your current mortgage with a new loan, typically to secure better terms, lower interest rates, or access equity. Understanding the costs and benefits is crucial for making an informed decision.
When to Consider Refinancing
Interest Rate Scenarios
| Rate Difference | Recommendation | Break-even Period | Potential Savings |
|---|---|---|---|
| 1.0%+ lower | Strongly Consider | 1-2 years | High |
| 0.5-1.0% lower | Consider | 2-3 years | Moderate |
| 0.25-0.5% lower | Evaluate Carefully | 3-5 years | Low |
| Less than 0.25% | Not Recommended | 5+ years | Minimal |
Other Refinancing Reasons
- Cash-Out Refinancing—Access home equity for investments or expenses
- Term Changes—Switch from 30-year to 15-year or vice versa
- Rate Type Change—Switch from floating to fixed rate or vice versa
- Remove PMI—Eliminate mortgage insurance with increased equity
- Debt Consolidation—Combine high-interest debts into mortgage
Refinancing Costs in Singapore
Typical Cost Breakdown
| Cost Item | Typical Range | Who Pays |
|---|---|---|
| Legal Fees | $2,500 - $5,000 | Borrower |
| Valuation Fees | $500 - $1,500 | Borrower |
| Processing Fees | $1,000 - $3,000 | Borrower |
| Prepayment Penalty | 1.5% - 3% of balance | Borrower |
| Stamp Duty | 0.2% - 0.4% of loan | Borrower |
| Fire Insurance | $200 - $500 | Borrower |
Cost Factors
| Factor | Impact on Costs | Typical Range |
|---|---|---|
| Loan Amount | High impact | 1.5% - 3% of loan |
| Property Type | Medium impact | ±$500 - $2,000 |
| Lender | Medium impact | ±$1,000 - $3,000 |
| Complexity | Low impact | ±$500 - $1,000 |
Break-even Analysis
Break-even Calculation
Break-even Point = Total Refinancing Costs ÷ Monthly Savings
Break-even Guidelines
| Break-even Period | Recommendation | Risk Level |
|---|---|---|
| Less than 2 years | Excellent opportunity | Low |
| 2-3 years | Good opportunity | Low-Medium |
| 3-5 years | Consider carefully | Medium |
| More than 5 years | Not recommended | High |
Types of Refinancing
Rate-and-Term Refinancing
- Purpose—Change interest rate or loan term
- Loan Amount—Same as current balance
- Benefits—Lower payments or faster payoff
- Costs—Standard refinancing costs
Cash-Out Refinancing
- Purpose—Access home equity for cash
- Loan Amount—Higher than current balance
- Benefits—Access to funds at mortgage rates
- Costs—Higher loan amount and payments
Cash-In Refinancing
- Purpose—Reduce loan balance with cash
- Loan Amount—Lower than current balance
- Benefits—Lower payments and interest
- Costs—Requires available cash
Refinancing Process
Step-by-Step Process
- Evaluate Current Loan—Review current terms and remaining balance
- Shop for Rates—Compare offers from multiple lenders
- Calculate Costs—Determine total refinancing costs
- Apply for Loan—Submit application with required documents
- Property Valuation—Lender orders property appraisal
- Loan Processing—Underwriting and approval process
- Legal Documentation—Prepare and review loan documents
- Loan Completion—Sign documents and fund new loan
- Payoff Old Loan—New lender pays off existing mortgage
Required Documentation
- Income Documents—Payslips, tax returns, CPF statements
- Property Documents—Title deed, property tax statements
- Current Loan Documents—Mortgage statements, loan agreement
- Financial Statements—Bank statements, investment accounts
- Identity Documents—NRIC, passport, proof of address
Risks and Considerations
Potential Risks
| Risk | Description | Mitigation |
|---|---|---|
| Rate Increases | Rates may rise after application | Lock in rates early |
| Property Value Drop | Lower valuation affects loan approval | Get recent comparable sales |
| Income Changes | Job loss or income reduction | Maintain stable employment |
| Credit Score Drop | Lower score affects rate offered | Monitor and maintain credit |
Important Considerations
- Timing—Consider market conditions and personal situation
- Long-term Plans—How long you plan to stay in the home
- Total Cost—Include all fees and closing costs
- Rate Type—Fixed vs. floating rate implications
- Lock-in Period—Restrictions on future refinancing
How to Use the Calculator
To use the Singapore Mortgage Refinancing Calculator:
- Enter your current loan balance
- Input current and new interest rates
- Select remaining and new loan terms
- Enter total refinancing costs
- Include current mortgage details
- Add advanced options if needed
- Click "Calculate" to see results
The calculator will show monthly savings, break-even analysis, and long-term financial impact.
This calculator provides estimates based on the information provided. Actual refinancing terms, costs, and savings depend on creditworthiness, property valuation, market conditions, and lender policies. Always consult with qualified mortgage professionals before making refinancing decisions.
Related calculators: Mortgage Calculator, Home Equity Loan Calculator, Property Calculator