Refinancing $750,000 from 7.50% to 6.50%
Estimated monthly saving
$665
$5,406 → $4,741 · closing costs $16,500 · break-even 25 months
Monthly saving after refinancing
$665
$5,406 → $4,741 per month (principal & interest)
Closing costs$16,500
Break-even25 months
Interest left on current loan$1,001,383
Interest on new loan$956,584
Net result over 7 years+$39,359
Refinancing looks worthwhile here: you recover the $16,500 of closing costs in about 25 months (rule of thumb: under 48 months).
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 |
|---|---|---|---|
| 6.25% | $788 | 21 mo | Worth it |
| 6.50% | $665 | 25 mo | Worth it |
| 6.75% | $541 | 31 mo | Worth it |
| 7.00% | $416 | 40 mo | Worth it |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $6,533 | +$1,128 | $425,995 |
| 20 years | $5,592 | +$186 | $592,032 |
| 30 years | $4,741 | −$665 | $956,584 |
FAQ
Is it worth refinancing $750,000 from 7.50% to 6.50%?
Yes by the usual test: the monthly payment drops about $665, closing costs are roughly $16,500, and you break even in about 25 months. Over 7 years the net gain is about $39,359.
How much interest does refinancing save?
Your current loan has about $1,001,383 of interest left. The new 30-year loan carries about $956,584. On a pure interest basis the difference is $44,800 saved — 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.