Jaken Aviation planning research · Source review: 2026-11-03 · General planning information
Compare a refinance with keeping the current loan using the same starting payoff and ownership horizon. Show upfront costs, payments, exit charges and remaining debt; a lower monthly payment alone does not establish a saving.
In this guide
Start with the existing note and a dated payoffPut new financing costs in the right placeUse one ownership horizonUnderstand three different resultsRead break-even carefullyBring conditions back into the decisionStart with the existing note and a dated payoff
Record current principal/payoff, rate or reset terms, scheduled payment, remaining amortization, maturity and applicable payoff costs. Distinguish the actual note balance from an all-in dated payoff amount. If the starting number already includes a charge, do not add it again in the refinance model.
State the objective: lower payment, different maturity exposure, changed rate risk, liquidity or another transaction need. Keep a cash-out request separate from a like-for-like refinance comparison; receiving additional proceeds changes the comparison. A calculator cannot decide whether a proposed structure is available or suitable for the borrower, aircraft and use.
Put new financing costs in the right place
Separate cash-paid new fees, fees added to new principal, current-loan payoff charges and charges expected at the modeled exit. New principal equals the payoff principal being replaced plus financed fees, under this tool’s convention. Cash fees affect upfront cash without changing the payment calculation.
Keep each charge’s actual basis and timing visible. A flat fee used in the planner is a scenario, not an assumption that the note has no percentage penalty, minimum interest, reset charge or other provision. Obtain a real dated payoff and written terms before relying on the model for a transaction.
Use one ownership horizon
Choose the month at which you intend to compare outcomes, within both modeled maturities. For keeping the loan, sum actual scheduled payments through that month and add remaining principal plus the assumed exit charge. For refinancing, add upfront costs, replacement-loan payments and its remaining principal/exit charge.
This balance-adjusted cash comparison makes the end obligations visible. If either note matures before the chosen hold, the simple model cannot silently continue its payment schedule: maturity repayment or a further financing event needs explicit treatment. A future loan at today’s assumed rate would be another scenario, not an established fact.
Understand three different results
Payment relief is the difference between recurring installments. Nominal horizon cash includes the relevant fees, payments and payoff at the comparison date. Present value discounts future amounts using a chosen effective annual discount rate converted consistently to monthly periods. Each result answers a different question.
Consider an original simplified zero-interest example. A $120,000 balance with 60 months remaining amortization requires $2,000 per month; replacing it with 120-month amortization requires $1,000. After 12 months, keeping has paid $24,000 and owes $96,000; refinancing has paid $12,000 and owes $108,000. Both total $120,000 before fees. A $5,000 cash refinance fee makes the replacement’s nominal horizon cash $125,000, despite $1,000 monthly payment relief.
Read break-even carefully
A shortcut dividing fees by monthly payment reduction omits the difference in remaining principal and can be misleading. The refinance planner instead checks the modeled balance-adjusted result at each eligible exit. If the benefit disappears again before the end of the modeled period, an earlier crossover should not be described as a sustained break-even.
“No break-even in the modeled period” is a valid result. It does not prove the proposal has no use: a borrower may deliberately value cash-flow relief or a different maturity. It means that rationale should be stated rather than disguising the cost difference as savings.
Bring conditions back into the decision
Compare guarantees, covenants, value/condition requirements, insurance, permitted use, documentation, fees and rate status with the current note. Ask which aspects are confirmed and what remains for assessment. If repayment depends on income or assets in another currency, run a separate currency stress case.
Keep the starting payoff date, modeled hold and fee assumptions with any exported result. Update the comparison when a new quote or aircraft finding arrives. Jaken Aviation’s refinance discussion begins with the actual debt, aircraft and objective; the modeled result is an aid to asking better questions, not an approval or recommendation to replace an existing contract.
Key takeaways
- Use an actual dated payoff and avoid double-counting charges.
- Compare both notes through the same horizon, including remaining debt.
- Report payment relief separately from nominal savings, present value and break-even.
Your planning checklist
- Use an actual dated payoff and avoid double-counting charges.
- Compare both notes through the same horizon, including remaining debt.
- Report payment relief separately from nominal savings, present value and break-even.
Sources and scope
Primary references support the identified factual context; examples and planning frameworks are original methodology. Sources do not approve an individual transaction.