Rates have moved. If you financed your aircraft when rates were above 7%, 8%, or higher, a refinance at today's 6.46% certified piston rate may save you hundreds per month. The process is simpler than your original loan.
Aircraft refinancing is one of the most underutilized tools in general aviation finance. A pilot who financed a Cirrus SR22 in 2022 at 8.5% and has not refinanced is paying roughly $460 more per month than someone who refinances today at 6.46% — on the same loan balance. Over 20 years, that's a $110,400 difference on a $300,000 loan. That money is available to reclaim. Most pilots don't know they can do it.
Most aircraft loans have no prepayment penalty. That means you can refinance any time — and today's rates are meaningfully lower than what many pilots are currently paying.
Aircraft refinancing works the same as your original loan — a new lender pays off the existing balance and issues a new loan at the current rate and your remaining term (or a new term, if you prefer). The aircraft is the collateral. The documentation requirements are similar to the original purchase, minus the purchase agreement. The pre-buy inspection may or may not be required depending on the new lender's policy and the aircraft's age.
Beyond rate reduction, refinancing can also be used to pull equity out of an aircraft for an upgrade — if your aircraft has appreciated (as Mooneys and certain Cirrus SR22T variants have), you may be able to access that equity for a down payment on a step-up aircraft, avionics upgrades, or other purposes. FLYING Finance has structured aircraft equity refinances and can explain when it makes sense.
Real savings estimates at current vs. older rate environments. 20-year remaining term on the existing balance.
| Aircraft / scenario | Old rate | Old monthly | New rate | New monthly |
|---|---|---|---|---|
| $280K balance — 2016 Cirrus SR22 | 8.50% | $2,430 | 6.46% | $2,081 |
| $420K balance — 2019 Cirrus SR22TSaves ~$458/mo · $5,496/yr | 8.25% | $3,579 | 6.46% | $3,121 |
| $650K balance — 2015 King Air C90GTxSaves ~$721/mo · $8,657/yr | 8.20% | $5,518 | 6.37% | $4,797 |
| $1.2M balance — 2018 TBM 930Saves ~$1,200/mo · $14,200/yr | 8.00% | $10,037 | 6.37% | $8,855 |
Four scenarios where aircraft refinancing typically makes financial sense.
If you financed before 2021 or during the 2022–2024 rate environment, your current rate is likely 7.5%–9.5%. Today's certified piston rate starts from 6.46%. Any loan balance above $100,000 with a rate more than 1% above today's market is worth evaluating for refinancing. The math changes at smaller balances and shorter remaining terms — use the calculator to confirm the savings justify the refinancing cost.
If your credit score was below 700 when you originally financed, or your income documentation has improved significantly, refinancing at today's rate with a stronger profile may produce a meaningfully better rate than your original loan — beyond just the market rate movement. Lenders price by profile, not just category. A 720+ borrower today vs. a 680 borrower in 2021 can see materially different pricing.
Mooney Acclaim Ultras, late-model Cirrus SR22T G7+ examples, and certain TBM variants have appreciated in the current market. If your aircraft's current value exceeds your loan balance by a meaningful amount, a cash-out refinance can access that equity for a down payment on a step-up aircraft, avionics upgrade (GTN 750, GFC 500), or other purposes. FLYING Finance has structured aircraft equity refinances and can explain the terms.
If you financed on a 10 or 15-year term and your payment is a strain, refinancing to a 20-year term at today's rate can significantly reduce your monthly obligation. The total interest paid increases with a longer term, but the cash flow relief may be worth it depending on your situation. The calculator can show you the tradeoff between term length, payment, and total cost.
No purchase agreement required for a straight refinance. Shorter file than your original loan.
Pre-buy inspection may or may not be required depending on lender and aircraft age. FLYING Finance will advise upfront.
FLYING Finance is part of Firecrown Media — publisher of FLYING Magazine, AvBuyer, AVweb, and Kitplanes. These resources are independent editorial content, not sales materials.
Resources the FLYING Finance team references when evaluating market conditions and aircraft values in this category.
"Refinancing is one of the most underutilized tools in aviation finance. I can calculate your savings in about 30 seconds. Tell me your current balance, rate, and aircraft — I'll show you what you could save."