Refinancing $400,000 from 7.50% to 7.50%
Estimated monthly saving
$86
$2,883 → $2,797 · closing costs $9,500 · break-even 111 months
Monthly saving after refinancing
$86
$2,883 → $2,797 per month (principal & interest)
Closing costs$9,500
Break-even111 months
Interest left on current loan$534,071
Interest on new loan$606,869
Net result over 7 years−$2,270
Refinancing does not pay off within a reasonable window at these numbers (break-even 111 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 |
|---|---|---|---|
| 7.25% | $154 | 62 mo | Marginal |
| 7.50% | $86 | 111 mo | Marginal |
| 7.75% | $17 | 550 mo | Marginal |
| 8.00% | -$52 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $3,708 | +$825 | $267,449 |
| 20 years | $3,222 | +$339 | $373,369 |
| 30 years | $2,797 | −$86 | $606,869 |
FAQ
Is it worth refinancing $400,000 from 7.50% to 7.50%?
At these numbers it is marginal: the saving is $86 per month against about $9,500 of closing costs, so break-even is 111 months. Over 7 years the net result is -$2,270.
How much interest does refinancing save?
Your current loan has about $534,071 of interest left. The new 30-year loan carries about $606,869. On a pure interest basis the difference is $72,798 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 $68 per month in savings on this balance, which shortens the break-even window.