Refinancing $500,000 from 6.50% to 7.00%
Change in monthly payment
$49
$3,278 → $3,327 · closing costs $11,500 · break-even never
Monthly change
$49
$3,278 → $3,327 per month (principal & interest)
Closing costs$11,500
Break-evenNever
Interest left on current loan$561,999
Interest on new loan$697,544
Net result over 7 years−$15,594
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% | $35 | 331 mo | Marginal |
| 7.00% | -$49 | — | Marginal |
| 7.25% | -$133 | — | Marginal |
| 7.50% | -$218 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $4,494 | +$1,216 | $308,945 |
| 20 years | $3,876 | +$599 | $430,359 |
| 30 years | $3,327 | +$49 | $697,544 |
FAQ
Is it worth refinancing $500,000 from 6.50% to 7.00%?
At these numbers it is marginal: the saving is -$49 per month against about $11,500 of closing costs, so break-even is never. Over 7 years the net result is -$15,594.
How much interest does refinancing save?
Your current loan has about $561,999 of interest left. The new 30-year loan carries about $697,544. On a pure interest basis the difference is $135,545 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 $84 per month in savings on this balance, which shortens the break-even window.