Refinancing $500,000 from 7.50% to 7.50%
Estimated monthly saving
$108
$3,604 → $3,496 · closing costs $11,500 · break-even 107 months
Monthly saving after refinancing
$108
$3,604 → $3,496 per month (principal & interest)
Closing costs$11,500
Break-even107 months
Interest left on current loan$667,589
Interest on new loan$758,586
Net result over 7 years−$2,462
Refinancing does not pay off within a reasonable window at these numbers (break-even 107 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% | $193 | 60 mo | Marginal |
| 7.50% | $108 | 107 mo | Marginal |
| 7.75% | $22 | 533 mo | Marginal |
| 8.00% | -$65 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $4,635 | +$1,031 | $334,311 |
| 20 years | $4,028 | +$424 | $466,712 |
| 30 years | $3,496 | −$108 | $758,586 |
FAQ
Is it worth refinancing $500,000 from 7.50% to 7.50%?
At these numbers it is marginal: the saving is $108 per month against about $11,500 of closing costs, so break-even is 107 months. Over 7 years the net result is -$2,462.
How much interest does refinancing save?
Your current loan has about $667,589 of interest left. The new 30-year loan carries about $758,586. On a pure interest basis the difference is $90,997 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 $85 per month in savings on this balance, which shortens the break-even window.