Refinancing $300,000 from 7.50% to 7.00%
Estimated monthly saving
$166
$2,162 → $1,996 · closing costs $7,500 · break-even 46 months
Monthly saving after refinancing
$166
$2,162 → $1,996 per month (principal & interest)
Closing costs$7,500
Break-even46 months
Interest left on current loan$400,553
Interest on new loan$418,527
Net result over 7 years+$6,469
Refinancing looks worthwhile here: you recover the $7,500 of closing costs in about 46 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 |
|---|---|---|---|
| 6.75% | $216 | 35 mo | Worth it |
| 7.00% | $166 | 46 mo | Worth it |
| 7.25% | $116 | 65 mo | Marginal |
| 7.50% | $65 | 117 mo | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $2,696 | +$534 | $185,367 |
| 20 years | $2,326 | +$164 | $258,215 |
| 30 years | $1,996 | −$166 | $418,527 |
FAQ
Is it worth refinancing $300,000 from 7.50% to 7.00%?
Yes by the usual test: the monthly payment drops about $166, closing costs are roughly $7,500, and you break even in about 46 months. Over 7 years the net gain is about $6,469.
How much interest does refinancing save?
Your current loan has about $400,553 of interest left. The new 30-year loan carries about $418,527. On a pure interest basis the difference is $17,973 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.