Calculator
Mortgage Refinance Feasibility Calculator
Checks whether it is worth refinancing your existing mortgage, including the exit costs.
Refinancing a mortgage can save tens and even hundreds of thousands of shekels, but only if the saving is larger than the costs involved in the process. This calculator compares your current payment with the payment after refinancing, and deducts the early repayment fee and file-opening costs to give a net picture rather than only a gross one.
Current mortgage
New terms
Estimated monthly saving
₪544
Current payment
₪5,061
Payment after refinancing
₪4,517
Gross saving over the term: ₪130,534
Net saving after refinancing costs: ₪122,534
The result is a general estimate only. The exact early repayment fee is obtained from the bank on request and may differ from what was entered here.
How the calculator works
You enter the mortgage balance, the current rate and the proposed new rate, the number of years remaining, and the costs of exiting the existing mortgage (early repayment fee and the costs of opening a new file). The calculator computes the monthly payment in both scenarios and the accumulated saving over the remaining term, net of costs.
The formula behind the calculation
Monthly saving = current monthly payment minus new monthly payment (both by the Spitzer formula). Net saving = (monthly saving × 12 × remaining years) minus the refinancing costs.
What the calculator does not include
It does not cover partial refinancing - of only some of the tracks in the mix
It assumes the new rate is fixed for the entire remaining term, which is not always the case on variable tracks
It does not calculate the early repayment fee itself - you need to enter it manually according to the figure you receive from the bank
Why it matters
The most common mistake in refinancing is comparing only the interest rates and ignoring the exit costs. Refinancing in the last year of a mortgage, for example, almost never pays off - even if the proposed rate is significantly lower, because there is not enough time to recover the exit cost.
Frequently asked questions
How do I find out my early repayment fee?
Your bank is obliged to provide an estimate on request, and there is also a dedicated calculator from the Bank of Israel. The fee depends on the average interest rate in the economy, on your rate, and on the remaining balance.
Is it worth refinancing the whole mortgage or only part of it?
It depends on the existing mix. If only one track is significantly expensive relative to the market, partially refinancing just that track can pay off more and be faster than dismantling the entire mortgage.
What is the minimum interest gap that makes refinancing worthwhile?
There is no uniform threshold - it depends on the remaining principal, the years left and the exit costs. A large mortgage with many years remaining can justify refinancing even with a relatively small rate gap.
Can I refinance a second time after I have already refinanced once?
Yes, there is no limit on the number of times. Every refinance check is done anew against current market conditions and the exit costs of the current mortgage at that moment.
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