Refinance Break-Even: $350k Balance, 7% to 6%, 15-Year Term, $7,000 Closing
Calculate the break-even period for refinancing a $350,000 mortgage from 7% to 6% on a 15-year term with $7,000 in closing costs.
How to use this tool
- Enter your remaining mortgage balance.
- Enter your current rate and the new rate you've been quoted.
- Enter the new loan term and estimated closing costs.
- Read the monthly savings and break-even period in months.
- Compare your break-even to how long you plan to keep the home.
See how refinancing a $350,000 mortgage to a 15-year term at 6% compares to a 7% rate, with a $7,000 closing cost break-even analysis.
Frequently asked questions
- When is refinancing worth it?
- Refinancing is generally worthwhile if you'll stay in the home past the break-even point — when accumulated monthly savings exceed the closing costs. A rate drop of about 0.75–1% often makes the math work.
- What are typical closing costs to refinance?
- Closing costs usually run 2–5% of the loan balance, covering appraisal, title, origination, and recording fees. On a $300,000 loan that's roughly $6,000–$15,000.
- Does refinancing reset my loan term?
- It can. Refinancing into a new 30-year loan lowers your payment but extends the payoff and may increase total interest. Choose a shorter term, or apply the savings as extra principal, to avoid that.