Refinancing $600,000 from 7.00% to 7.50%
Change in monthly payment
$68
$4,127 → $4,195 · closing costs $13,500 · break-even never
Monthly change
$68
$4,127 → $4,195 per month (principal & interest)
Closing costs$13,500
Break-evenNever
Interest left on current loan$737,112
Interest on new loan$910,303
Net result over 7 years−$19,245
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 |
|---|---|---|---|
| 7.25% | $34 | 400 mo | Marginal |
| 7.50% | -$68 | — | Marginal |
| 7.75% | -$172 | — | Marginal |
| 8.00% | -$276 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $5,562 | +$1,435 | $401,173 |
| 20 years | $4,834 | +$707 | $560,054 |
| 30 years | $4,195 | +$68 | $910,303 |
FAQ
Is it worth refinancing $600,000 from 7.00% to 7.50%?
At these numbers it is marginal: the saving is -$68 per month against about $13,500 of closing costs, so break-even is never. Over 7 years the net result is -$19,245.
How much interest does refinancing save?
Your current loan has about $737,112 of interest left. The new 30-year loan carries about $910,303. On a pure interest basis the difference is $173,191 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 $102 per month in savings on this balance, which shortens the break-even window.