Refinancing $200,000 from 6.50% to 6.50%
Estimated monthly saving
$47
$1,311 → $1,264 · closing costs $5,500 · break-even 118 months
Monthly saving after refinancing
$47
$1,311 → $1,264 per month (principal & interest)
Closing costs$5,500
Break-even118 months
Interest left on current loan$224,800
Interest on new loan$255,089
Net result over 7 years−$1,554
Refinancing does not pay off within a reasonable window at these numbers (break-even 118 months). Try a bigger rate drop or lower closing costs.
Rate drop: 0.00%. Figures exclude escrow changes and any discount points.
What happens at nearby new rates
| New rate | Monthly saving | Break-even | Verdict |
|---|---|---|---|
| 6.25% | $80 | 70 mo | Marginal |
| 6.50% | $47 | 118 mo | Marginal |
| 6.75% | $14 | 396 mo | Marginal |
| 7.00% | -$19 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $1,742 | +$431 | $113,599 |
| 20 years | $1,491 | +$180 | $157,875 |
| 30 years | $1,264 | −$47 | $255,089 |
FAQ
Is it worth refinancing $200,000 from 6.50% to 6.50%?
At these numbers it is marginal: the saving is $47 per month against about $5,500 of closing costs, so break-even is 118 months. Over 7 years the net result is -$1,554.
How much interest does refinancing save?
Your current loan has about $224,800 of interest left. The new 30-year loan carries about $255,089. On a pure interest basis the difference is $30,289 more — remember the new loan also restarts the term.
What if rates drop further?
Every extra 0.25% lower on the new rate adds roughly $33 per month in savings on this balance, which shortens the break-even window.