Refinancing $300,000 from 7.00% to 6.50%
Estimated monthly saving
$167
$2,063 → $1,896 · closing costs $7,500 · break-even 45 months
Monthly saving after refinancing
$167
$2,063 → $1,896 per month (principal & interest)
Closing costs$7,500
Break-even45 months
Interest left on current loan$368,556
Interest on new loan$382,633
Net result over 7 years+$6,548
Refinancing looks worthwhile here: you recover the $7,500 of closing costs in about 45 months (rule of thumb: under 48 months).
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 |
|---|---|---|---|
| 6.25% | $216 | 35 mo | Worth it |
| 6.50% | $167 | 45 mo | Worth it |
| 6.75% | $118 | 64 mo | Marginal |
| 7.00% | $68 | 112 mo | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $2,613 | +$550 | $170,398 |
| 20 years | $2,237 | +$173 | $236,813 |
| 30 years | $1,896 | −$167 | $382,633 |
FAQ
Is it worth refinancing $300,000 from 7.00% to 6.50%?
Yes by the usual test: the monthly payment drops about $167, closing costs are roughly $7,500, and you break even in about 45 months. Over 7 years the net gain is about $6,548.
How much interest does refinancing save?
Your current loan has about $368,556 of interest left. The new 30-year loan carries about $382,633. On a pure interest basis the difference is $14,077 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 $49 per month in savings on this balance, which shortens the break-even window.