Refinancing $400,000 from 6.50% to 7.00%
Change in monthly payment
$39
$2,622 → $2,661 · closing costs $9,500 · break-even never
Monthly change
$39
$2,622 → $2,661 per month (principal & interest)
Closing costs$9,500
Break-evenNever
Interest left on current loan$449,599
Interest on new loan$558,036
Net result over 7 years−$12,775
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% | $28 | 342 mo | Marginal |
| 7.00% | -$39 | — | Marginal |
| 7.25% | -$106 | — | Marginal |
| 7.50% | -$175 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $3,595 | +$973 | $247,156 |
| 20 years | $3,101 | +$479 | $344,287 |
| 30 years | $2,661 | +$39 | $558,036 |
FAQ
Is it worth refinancing $400,000 from 6.50% to 7.00%?
At these numbers it is marginal: the saving is -$39 per month against about $9,500 of closing costs, so break-even is never. Over 7 years the net result is -$12,775.
How much interest does refinancing save?
Your current loan has about $449,599 of interest left. The new 30-year loan carries about $558,036. On a pure interest basis the difference is $108,436 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 $67 per month in savings on this balance, which shortens the break-even window.