Refinancing $750,000 from 7.00% to 6.50%
Estimated monthly saving
$418
$5,159 → $4,741 · closing costs $16,500 · break-even 40 months
Monthly saving after refinancing
$418
$5,159 → $4,741 per month (principal & interest)
Closing costs$16,500
Break-even40 months
Interest left on current loan$921,390
Interest on new loan$956,584
Net result over 7 years+$18,621
Refinancing looks worthwhile here: you recover the $16,500 of closing costs in about 40 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% | $541 | 31 mo | Worth it |
| 6.50% | $418 | 40 mo | Worth it |
| 6.75% | $294 | 57 mo | Marginal |
| 7.00% | $169 | 98 mo | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $6,533 | +$1,375 | $425,995 |
| 20 years | $5,592 | +$433 | $592,032 |
| 30 years | $4,741 | −$418 | $956,584 |
FAQ
Is it worth refinancing $750,000 from 7.00% to 6.50%?
Yes by the usual test: the monthly payment drops about $418, closing costs are roughly $16,500, and you break even in about 40 months. Over 7 years the net gain is about $18,621.
How much interest does refinancing save?
Your current loan has about $921,390 of interest left. The new 30-year loan carries about $956,584. On a pure interest basis the difference is $35,193 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 $123 per month in savings on this balance, which shortens the break-even window.