Refinancing $600,000 from 7.50% to 7.00%
Estimated monthly saving
$333
$4,324 → $3,992 · closing costs $13,500 · break-even 41 months
Monthly saving after refinancing
$333
$4,324 → $3,992 per month (principal & interest)
Closing costs$13,500
Break-even41 months
Interest left on current loan$801,107
Interest on new loan$837,053
Net result over 7 years+$14,437
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 |
|---|---|---|---|
| 6.75% | $433 | 32 mo | Worth it |
| 7.00% | $333 | 41 mo | Worth it |
| 7.25% | $231 | 59 mo | Marginal |
| 7.50% | $129 | 105 mo | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $5,393 | +$1,069 | $370,735 |
| 20 years | $4,652 | +$327 | $516,430 |
| 30 years | $3,992 | −$333 | $837,053 |
FAQ
Is it worth refinancing $600,000 from 7.50% to 7.00%?
Yes by the usual test: the monthly payment drops about $333, closing costs are roughly $13,500, and you break even in about 41 months. Over 7 years the net gain is about $14,437.
How much interest does refinancing save?
Your current loan has about $801,107 of interest left. The new 30-year loan carries about $837,053. On a pure interest basis the difference is $35,947 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.