Refinancing: Pay Off an Existing Loan and Save on Interest
Did you take out a loan a few years ago at a higher interest rate? Then refinancing could be interesting for you. You pay off your existing loan with a new, cheaper one — and save real money over the remaining term. In Switzerland, refinancing is a proven way to reduce the financial burden.
What Is Refinancing?
With refinancing, an existing loan is fully repaid and replaced by a new loan with better terms. The goal is typically to: - Obtain a lower interest rate - Reduce the monthly instalment - Consolidate multiple loans into one - Adjust the remaining term
Calculation Example: CHF 30,000 Refinancing
Current situation (bank loan at 10%): - Monthly instalment: approx. CHF 761 - Remaining interest payments over 48 months: approx. CHF 6,528
After refinancing to Cashare (7% p.a., class C): - New monthly instalment: approx. CHF 718 - Remaining interest payments over 48 months: approx. CHF 4,464
Saving: CHF 2,064 over the remaining term.
No Early Repayment Penalty at Cashare
A key advantage: at Cashare, early repayment is free of charge. This makes refinancing considerably more attractive compared to banks that charge early repayment penalties.
Consolidating Multiple Loans
Many households have several loans running simultaneously. With debt consolidation at Cashare, all loans are combined into a single one: - Only one monthly instalment - Better overview of total debt - Often a lower overall interest rate
Conclusion: Refinancing Can Be Highly Worthwhile
Anyone with a loan running at higher interest rates should seriously consider the possibility of refinancing. Particularly attractive at Cashare: no early repayment penalty on the new loan and competitive rates from 4.4%.