Refinancing $300,000 from 6.50% to 7.00%
Change in monthly payment
$29
$1,967 → $1,996 · closing costs $7,500 · break-even never
Monthly change
$29
$1,967 → $1,996 per month (principal & interest)
Closing costs$7,500
Break-evenNever
Interest left on current loan$337,199
Interest on new loan$418,527
Net result over 7 years−$9,956
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% | $21 | 360 mo | Marginal |
| 7.00% | -$29 | — | Marginal |
| 7.25% | -$80 | — | Marginal |
| 7.50% | -$131 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $2,696 | +$730 | $185,367 |
| 20 years | $2,326 | +$359 | $258,215 |
| 30 years | $1,996 | +$29 | $418,527 |
FAQ
Is it worth refinancing $300,000 from 6.50% to 7.00%?
At these numbers it is marginal: the saving is -$29 per month against about $7,500 of closing costs, so break-even is never. Over 7 years the net result is -$9,956.
How much interest does refinancing save?
Your current loan has about $337,199 of interest left. The new 30-year loan carries about $418,527. On a pure interest basis the difference is $81,327 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 $50 per month in savings on this balance, which shortens the break-even window.