Refinancing $300,000 from 7.00% to 7.50%
Change in monthly payment
$34
$2,063 → $2,098 · closing costs $7,500 · break-even never
Monthly change
$34
$2,063 → $2,098 per month (principal & interest)
Closing costs$7,500
Break-evenNever
Interest left on current loan$368,556
Interest on new loan$455,152
Net result over 7 years−$10,373
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% | $17 | 444 mo | Marginal |
| 7.50% | -$34 | — | Marginal |
| 7.75% | -$86 | — | Marginal |
| 8.00% | -$138 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $2,781 | +$718 | $200,587 |
| 20 years | $2,417 | +$353 | $280,027 |
| 30 years | $2,098 | +$34 | $455,152 |
FAQ
Is it worth refinancing $300,000 from 7.00% to 7.50%?
At these numbers it is marginal: the saving is -$34 per month against about $7,500 of closing costs, so break-even is never. Over 7 years the net result is -$10,373.
How much interest does refinancing save?
Your current loan has about $368,556 of interest left. The new 30-year loan carries about $455,152. On a pure interest basis the difference is $86,596 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 $51 per month in savings on this balance, which shortens the break-even window.