Mortgage Refinancing — When Is It Worth It and How to Do It?

Mortgage Refinancing — When Is It Worth It and How to Do It? Do you have a mortgage taken out in the years 2021–2024? Your installment might have been calculated at an interest rate of 6.5–9%. Today, interest rates are lower — and it's worth checking if you're overpaying.

What is mortgage refinancing? Refinancing is transferring a mortgage to another bank — on better terms. The new bank pays off your existing loan, and you start repaying it in the new place, often with a lower interest rate.

Refinancing doesn't mean you're taking on new debt. It's the same loan — just moved to where the conditions are better.

When does refinancing make sense? Refinancing is worth considering when: • Your interest rate is above 6.5% and was set in 2021–2024 • You still have at least a few years of the loan ahead of you • You took out the loan with a 10% down payment, and the property value has grown or you've already repaid more % of the capital — and today your LTV is at least 80%, which opens access to better offers • The margin in your current bank is clearly higher than what the market offers

Every situation is different — that's why it's worth checking individually whether refinancing pays off. An expert will calculate it for you and tell you directly what you can gain.

True story: the same installment — 14 years shorter A client had a mortgage with an interest rate of 8.34%. After changing the terms to 6.06% — without any overpayment — he had 170 months left instead of 336 until the end of the repayment. The same installment. Almost 14 years shorter.

166 months shorter — almost 14 years. Not because of overpayment — just by changing the interest rate from 8.84% to 6.06%.

What costs are worth checking before refinancing? Depending on the bank's offer and your situation, additional costs may arise during refinancing. It's worth checking them before making a decision:

• Property appraisal by an appraiser • Entry of the new mortgage and deletion of the old mortgage in the land and mortgage register • Life insurance — required by some banks • Early repayment commission in the current bank — check your contract, not every bank charges it

Can your bank also offer you better terms? Yes.

This is called renegotiating the loan terms. You can ask your current bank for a margin reduction. Banks often agree to a more favorable change in terms when they see that the client is seriously considering leaving.

In practice, the best leverage for renegotiation is a ready offer from another bank. An expert can help you get it — and use it as an argument.

What does the refinancing process look like? Step 1 — Analysis of the current loan We check your interest rate, margin, how much is left to pay, and what the early repayment costs are in the current bank.

Step 2 — Comparison of bank offers An expert compares bank offers and calculates what you will actually gain — including all refinancing costs.

Step 3 — Preparation of documents and submission of the application The expert completes the documents and submits an application to the bank with the best offer for your situation.

Step 4 — Contract and loan repayment After a positive decision, you sign a contract with the new bank. The new bank pays off your existing loan — from now on, you pay it in the new place, on new terms.

Step 5 — Change of entry in the land and mortgage register The old bank's mortgage is deleted, and the new one's mortgage is entered. This is the formal final of the refinancing process.

Check if your loan is suitable for refinancing If you have a mortgage from 2021–2024 — it's worth checking. A free consultation with an expert takes 15–30 minutes. An expert will analyze your contract, calculate possible savings, and tell you directly what you can gain.

Book a free consultation at naszekspert.pl