Refinancing $600,000 from 7.00% to 6.50%
Estimated monthly saving
$334
$4,127 → $3,792 · closing costs $13,500 · break-even 41 months
Monthly saving after refinancing
$334
$4,127 → $3,792 per month (principal & interest)
Closing costs$13,500
Break-even41 months
Interest left on current loan$737,112
Interest on new loan$765,267
Net result over 7 years+$14,596
Refinancing looks worthwhile here: you recover the $13,500 of closing costs in about 41 months (rule of thumb: under 48 months).
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 |
|---|---|---|---|
| 6.25% | $433 | 32 mo | Worth it |
| 6.50% | $334 | 41 mo | Worth it |
| 6.75% | $235 | 58 mo | Marginal |
| 7.00% | $135 | 100 mo | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $5,227 | +$1,100 | $340,796 |
| 20 years | $4,473 | +$347 | $473,625 |
| 30 years | $3,792 | −$334 | $765,267 |
FAQ
Is it worth refinancing $600,000 from 7.00% to 6.50%?
Yes by the usual test: the monthly payment drops about $334, closing costs are roughly $13,500, and you break even in about 41 months. Over 7 years the net gain is about $14,596.
How much interest does refinancing save?
Your current loan has about $737,112 of interest left. The new 30-year loan carries about $765,267. On a pure interest basis the difference is $28,155 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 $98 per month in savings on this balance, which shortens the break-even window.