Refinancing $200,000 from 6.50% to 7.00%
Change in monthly payment
$19
$1,311 → $1,331 · closing costs $5,500 · break-even never
Monthly change
$19
$1,311 → $1,331 per month (principal & interest)
Closing costs$5,500
Break-evenNever
Interest left on current loan$224,800
Interest on new loan$279,018
Net result over 7 years−$7,138
Refinancing does not pay off within a reasonable window at these numbers (break-even never). Try a bigger rate drop or lower closing costs.
Rate drop: -0.50%. Figures exclude escrow changes and any discount points.
What happens at nearby new rates
| New rate | Monthly saving | Break-even | Verdict |
|---|---|---|---|
| 6.75% | $14 | 396 mo | Marginal |
| 7.00% | -$19 | — | Marginal |
| 7.25% | -$53 | — | Marginal |
| 7.50% | -$87 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $1,798 | +$487 | $123,578 |
| 20 years | $1,551 | +$239 | $172,143 |
| 30 years | $1,331 | +$19 | $279,018 |
FAQ
Is it worth refinancing $200,000 from 6.50% to 7.00%?
At these numbers it is marginal: the saving is -$19 per month against about $5,500 of closing costs, so break-even is never. Over 7 years the net result is -$7,138.
How much interest does refinancing save?
Your current loan has about $224,800 of interest left. The new 30-year loan carries about $279,018. On a pure interest basis the difference is $54,218 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.