Refinancing $600,000 from 7.50% to 7.50%
Estimated monthly saving
$129
$4,324 → $4,195 · closing costs $13,500 · break-even 105 months
Monthly saving after refinancing
$129
$4,324 → $4,195 per month (principal & interest)
Closing costs$13,500
Break-even105 months
Interest left on current loan$801,107
Interest on new loan$910,303
Net result over 7 years−$2,654
Refinancing does not pay off within a reasonable window at these numbers (break-even 105 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% | $231 | 59 mo | Marginal |
| 7.50% | $129 | 105 mo | Marginal |
| 7.75% | $26 | 521 mo | Marginal |
| 8.00% | -$78 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $5,562 | +$1,238 | $401,173 |
| 20 years | $4,834 | +$509 | $560,054 |
| 30 years | $4,195 | −$129 | $910,303 |
FAQ
Is it worth refinancing $600,000 from 7.50% to 7.50%?
At these numbers it is marginal: the saving is $129 per month against about $13,500 of closing costs, so break-even is 105 months. Over 7 years the net result is -$2,654.
How much interest does refinancing save?
Your current loan has about $801,107 of interest left. The new 30-year loan carries about $910,303. On a pure interest basis the difference is $109,197 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.