Refinancing $600,000 from 6.50% to 7.00%
Change in monthly payment
$58
$3,933 → $3,992 · closing costs $13,500 · break-even never
Monthly change
$58
$3,933 → $3,992 per month (principal & interest)
Closing costs$13,500
Break-evenNever
Interest left on current loan$674,399
Interest on new loan$837,053
Net result over 7 years−$18,413
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% | $42 | 324 mo | Marginal |
| 7.00% | -$58 | — | Marginal |
| 7.25% | -$160 | — | Marginal |
| 7.50% | -$262 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $5,393 | +$1,460 | $370,735 |
| 20 years | $4,652 | +$718 | $516,430 |
| 30 years | $3,992 | +$58 | $837,053 |
FAQ
Is it worth refinancing $600,000 from 6.50% to 7.00%?
At these numbers it is marginal: the saving is -$58 per month against about $13,500 of closing costs, so break-even is never. Over 7 years the net result is -$18,413.
How much interest does refinancing save?
Your current loan has about $674,399 of interest left. The new 30-year loan carries about $837,053. On a pure interest basis the difference is $162,655 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 $100 per month in savings on this balance, which shortens the break-even window.