Refinancing $500,000 from 6.50% to 6.50%
Estimated monthly saving
$117
$3,278 → $3,160 · closing costs $11,500 · break-even 98 months
Monthly saving after refinancing
$117
$3,278 → $3,160 per month (principal & interest)
Closing costs$11,500
Break-even98 months
Interest left on current loan$561,999
Interest on new loan$637,722
Net result over 7 years−$1,635
Refinancing does not pay off within a reasonable window at these numbers (break-even 98 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 |
|---|---|---|---|
| 6.25% | $199 | 58 mo | Marginal |
| 6.50% | $117 | 98 mo | Marginal |
| 6.75% | $35 | 331 mo | Marginal |
| 7.00% | -$49 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $4,356 | +$1,078 | $283,997 |
| 20 years | $3,728 | +$450 | $394,688 |
| 30 years | $3,160 | −$117 | $637,722 |
FAQ
Is it worth refinancing $500,000 from 6.50% to 6.50%?
At these numbers it is marginal: the saving is $117 per month against about $11,500 of closing costs, so break-even is 98 months. Over 7 years the net result is -$1,635.
How much interest does refinancing save?
Your current loan has about $561,999 of interest left. The new 30-year loan carries about $637,722. On a pure interest basis the difference is $75,723 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 $82 per month in savings on this balance, which shortens the break-even window.