Refinancing $200,000 from 7.00% to 7.50%
Change in monthly payment
$23
$1,376 → $1,398 · closing costs $5,500 · break-even never
Monthly change
$23
$1,376 → $1,398 per month (principal & interest)
Closing costs$5,500
Break-evenNever
Interest left on current loan$245,704
Interest on new loan$303,434
Net result over 7 years−$7,415
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 |
|---|---|---|---|
| 7.25% | $11 | 488 mo | Marginal |
| 7.50% | -$23 | — | Marginal |
| 7.75% | -$57 | — | Marginal |
| 8.00% | -$92 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $1,854 | +$478 | $133,724 |
| 20 years | $1,611 | +$236 | $186,685 |
| 30 years | $1,398 | +$23 | $303,434 |
FAQ
Is it worth refinancing $200,000 from 7.00% to 7.50%?
At these numbers it is marginal: the saving is -$23 per month against about $5,500 of closing costs, so break-even is never. Over 7 years the net result is -$7,415.
How much interest does refinancing save?
Your current loan has about $245,704 of interest left. The new 30-year loan carries about $303,434. On a pure interest basis the difference is $57,730 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 $34 per month in savings on this balance, which shortens the break-even window.