New payment, break-even month, and how far ahead you are when you move, counting the balance left on each loan.
Refinancing saves $311N2 a month and earns back its closing costs in 26 monthsN3. After 7 years you're $19,068N4 ahead.
Plan K-1030-year fixed at 6.25% against 7.5% today. Estimates, not a loan offer.
Refinancing saves $311 a month and earns back its closing costs in 26 months. After 7 years you're $19,068 ahead.
What each costs, and where each stands after 7 years
| Line item | Keep current | Refinance |
|---|---|---|
| Rate | 7.5% | 6.25% |
| Term left | 28 years | 30 years |
| Loan amount | $320,000 | $320,000 |
| Monthly principal & interest | $2,281 | $1,970 |
| Closing costs | — | $8,000 |
| Interest still to pay | $446,475 | $389,306 |
Payment savings after cash closing costs, plus the difference in what you'd still owe
| Year | Payments saved | Balance difference | You're ahead by |
|---|---|---|---|
| 1 | -$4,269 | $257 | -$4,012 |
| 2 | -$539 | $484 | -$54 |
| 3 | $3,192 | $676 | $3,868 |
| 4 | $6,922 | $826 | $7,749 |
| 5 | $10,653 | $928 | $11,581 |
| 6 | $14,383 | $973 | $15,357 |
| 7you move | $18,114 | $954 | $19,068 |
| 8 | $21,845 | $861 | $22,706 |
| 9 | $25,575 | $683 | $26,258 |
| 10 | $29,306 | $410 | $29,715 |
Estimates for education only, not a loan offer. Compares principal and interest only; taxes and insurance don't change with a refinance. Cash taken out counts as money in hand. Confirm rates and fees on a loan estimate.