Refinancing $400,000 from 7.00% to 7.00%
Estimated monthly saving
$90
$2,751 → $2,661 · closing costs $9,500 · break-even 106 months
Monthly saving after refinancing
$90
$2,751 → $2,661 per month (principal & interest)
Closing costs$9,500
Break-even106 months
Interest left on current loan$491,408
Interest on new loan$558,036
Net result over 7 years−$1,936
Refinancing does not pay off within a reasonable window at these numbers (break-even 106 months). Try a bigger rate drop or lower closing costs.
Rate drop: 0.00%. Figures exclude escrow changes and any discount points.
What happens at nearby new rates
| New rate | Monthly saving | Break-even | Verdict |
|---|---|---|---|
| 6.75% | $157 | 61 mo | Marginal |
| 7.00% | $90 | 106 mo | Marginal |
| 7.25% | $23 | 422 mo | Marginal |
| 7.50% | -$46 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $3,595 | +$844 | $247,156 |
| 20 years | $3,101 | +$350 | $344,287 |
| 30 years | $2,661 | −$90 | $558,036 |
FAQ
Is it worth refinancing $400,000 from 7.00% to 7.00%?
At these numbers it is marginal: the saving is $90 per month against about $9,500 of closing costs, so break-even is 106 months. Over 7 years the net result is -$1,936.
How much interest does refinancing save?
Your current loan has about $491,408 of interest left. The new 30-year loan carries about $558,036. On a pure interest basis the difference is $66,627 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.