Refinancing $750,000 from 6.50% to 7.50%
Change in monthly payment
$327
$4,917 → $5,244 · closing costs $16,500 · break-even never
Monthly change
$327
$4,917 → $5,244 per month (principal & interest)
Closing costs$16,500
Break-evenNever
Interest left on current loan$842,999
Interest on new loan$1,137,879
Net result over 7 years−$44,006
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: -1.00%. Figures exclude escrow changes and any discount points.
What happens at nearby new rates
| New rate | Monthly saving | Break-even | Verdict |
|---|---|---|---|
| 7.25% | -$200 | — | Marginal |
| 7.50% | -$327 | — | Marginal |
| 7.75% | -$456 | — | Marginal |
| 8.00% | -$587 | — | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $6,953 | +$2,036 | $501,467 |
| 20 years | $6,042 | +$1,125 | $700,068 |
| 30 years | $5,244 | +$327 | $1,137,879 |
FAQ
Is it worth refinancing $750,000 from 6.50% to 7.50%?
At these numbers it is marginal: the saving is -$327 per month against about $16,500 of closing costs, so break-even is never. Over 7 years the net result is -$44,006.
How much interest does refinancing save?
Your current loan has about $842,999 of interest left. The new 30-year loan carries about $1,137,879. On a pure interest basis the difference is $294,881 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 $128 per month in savings on this balance, which shortens the break-even window.