Compare refinancing offers

Compare the payments still outstanding on the old loan with all payments on the new loan. Take into account the current settlement amount and any settlement costs. A smaller monthly repayment alone does not prove an overall saving.

An extra amount increases the new financing and makes it harder to compare with your existing loan. First calculate the pure settlement and then the additional need separately. That way it stays clear which part is a saving and which is an additional burden.

That depends on the difference between what the old loan still costs and what the new one costs in total — including all one-off costs. Rules of thumb are of little help here. Set the two against each other in the refinancing calculator and first set the new term to the old remaining term, otherwise you are comparing two different things.

The settlement amount on a given cut-off date and the amount of any early repayment compensation. How the compensation is calculated must be stated in the contract if the lender intends to claim it (Art. 247 § 7 (1) no. 3 EGBGB), but the actual amount is only determined when the loan is paid off. Ask for both in writing. For instalment loans the compensation is capped at one per cent of the amount repaid, or half a per cent if the remaining term is short.