Refinance Calculator — From 7% to 6% Rate
Monthly savings and break-even when refinancing from 7% to 6% on a $300K balance.
Quick Answer
Save $322/month — break even in 19 months
Current payment
$2,120
New payment
$1,799
Monthly savings
$322
Closing costs
$6,000
Break-even
19 months (1.6 yrs)
5-year net savings
$13,301
- ✓Break-even at 19 months — only refinance if you plan to stay in the home past then
- ✓Rate drop of 1.00% saves $3,860/year
- ✓Resetting to a 30-year term extends your payoff — weigh savings vs additional years of payments
- ✓No-closing-cost refinance rolls fees into the rate — useful if you may move within 3–5 years
Current Monthly Payment
$2,120.34
New Monthly Payment
$1,798.65
Monthly Savings
$321.69
Break-Even Point
19 months
Total Interest Saved
$-11,413.29
Typical closing costs: 2–5% of loan amount. Break-even = closing costs ÷ monthly savings.
Frequently Asked Questions
Is it worth refinancing from 7% to 6%?
Save $322/month — break even in 19 months. The break-even is 19 months (1.6 yrs) — if you plan to stay in the home longer than that, refinancing saves money. If you might move or sell sooner, the closing costs won't be recouped.
How much are typical closing costs for a refinance?
Closing costs typically run 2–5% of the loan balance — $6,000 to $15,000 in this case. This estimate uses $6,000. A no-closing-cost refinance rolls fees into a slightly higher rate — useful if you might move within 3–5 years.
Does refinancing reset my mortgage term?
Only if you refinance into a new 30-year loan. You can choose a shorter term (e.g., 15-year) to pay off faster. Resetting to a full 30-year term lowers monthly payments but extends your payoff date and increases total interest paid — weigh monthly savings against long-term cost.
What credit score do I need to get a 6% refinance rate?
Rates below 6.5% generally require a 740+ credit score, 20%+ equity, and a stable income history. Each 20-point drop in credit score typically adds 0.1–0.5% to your rate. Check your credit and equity position before applying — a hard inquiry from multiple lenders within 45 days counts as one inquiry.
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Results are estimates for informational purposes only and do not constitute financial advice. Tax figures use 2026 US rates. Consult a licensed financial advisor before making financial decisions.Last updated: April 2026