This guide explains a model, not a lender offer, approval prediction or functioning calculator.
Gather current-account inputs
Record remaining principal, rate, payment and estimated remaining schedule. Keep accrued interest and fees separate until you know how a payoff and replacement would treat them.
If you have several loans, model them individually before combining totals. A weighted average may hide different remaining terms or account features.
Enter actual proposed terms
Use the personally offered rate, not a lender’s best advertised minimum. Record fixed or variable structure, fees, new principal, term and payment-start timing.
A variable-rate projection needs explicit assumptions. Do not extrapolate the initial rate forever without labeling that limitation or predict future rates as though they are known.
Separate monthly and lifetime outcomes
Show the payment difference, total payments, modeled interest and fees. A lower bill can coexist with higher total cost if repayment is extended.
For fictional schedules, $180 for 48 months totals $8,640; $140 for 72 months totals $10,080. These are arithmetic illustrations, not actual refinancing quotes. The second is easier monthly but requires more total payments under the example.
Include an unmodeled-consequences checklist
The calculator cannot price every change in repayment flexibility, relief eligibility or contractual rights. Identify the features you rely on and verify what the replacement would do to them.
Do not label a result “savings” without clarifying whether it means lower monthly payments, lower modeled interest or lower total payments after fees. Those are different measurements.
Test fees and timing
Ask whether fees are paid separately or included in the new balance. If there is an upfront cost, compare it with the modeled benefit over the period you expect to keep the loan.
Keep old-loan payments and the new loan’s effective date distinct while the transaction processes. The model should not suggest that approval itself closes the prior accounts.
Next step
Run an equal-term comparison, then a separate extended-term case if offered. Review nonnumeric consequences before deciding. Use final disclosures and payoff confirmations—not an estimate—to establish the completed transaction.
Program details reflect the source review supplied in Linear. Confirm the provider’s current requirements before applying.
