Refinancing $750,000 from 7.50% to 7.00%
Estimated monthly saving
$416
$5,406 → $4,990 · closing costs $16,500 · break-even 40 months
Monthly saving after refinancing
$416
$5,406 → $4,990 per month (principal & interest)
Closing costs$16,500
Break-even40 months
Interest left on current loan$1,001,383
Interest on new loan$1,046,317
Net result over 7 years+$18,422
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 |
|---|---|---|---|
| 6.75% | $541 | 31 mo | Worth it |
| 7.00% | $416 | 40 mo | Worth it |
| 7.25% | $289 | 58 mo | Marginal |
| 7.50% | $161 | 103 mo | Marginal |
Choosing the new term
| New term | New P&I | Monthly change | Total interest |
|---|---|---|---|
| 15 years | $6,741 | +$1,336 | $463,418 |
| 20 years | $5,815 | +$409 | $645,538 |
| 30 years | $4,990 | −$416 | $1,046,317 |
FAQ
Is it worth refinancing $750,000 from 7.50% to 7.00%?
Yes by the usual test: the monthly payment drops about $416, closing costs are roughly $16,500, and you break even in about 40 months. Over 7 years the net gain is about $18,422.
How much interest does refinancing save?
Your current loan has about $1,001,383 of interest left. The new 30-year loan carries about $1,046,317. On a pure interest basis the difference is $44,934 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 $125 per month in savings on this balance, which shortens the break-even window.