Refinance example · Educational math
What if I refinance $250,000 from 7% into a 15-year loan at 6%?
Stated sample rates—not lender quotes.
Calculator · How we calculate · Questions
Direct answer
Direct answer (stated sample only): refinancing $250,000.00 from 7% (240 months left) to 6% for 180 months changes the payment from about $1,938.25 to about $2,109.64 (monthly difference about -$171.39; interest difference about $85,443.79). Cash closing costs do not break even under the monthly-savings model. Not a lender quote.
| Current | New | |
|---|---|---|
| Payment | $1,938.25 | $2,109.64 |
| Total interest | $215,179.36 | $129,735.57 |
| Principal | $250,000.00 | $250,000.00 |
Educational comparison only. Not a refinance offer, underwriting decision, or advice to refinance. Closing costs, points, and taxes vary by lender and location.
Side-by-side
Current path vs new loan| Current | New |
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Common questions
How does refinancing $250,000 from 7% into a 15-year loan at 6% change payment and interest?
Direct answer (stated sample only): refinancing $250,000.00 from 7% (240 months left) to 6% for 180 months changes the payment from about $1,938.25 to about $2,109.64 (monthly difference about -$171.39; interest difference about $85,443.79). Cash closing costs do not break even under the monthly-savings model. Not a lender quote.
Is this rate a real refinance offer?
No. Sample rates are illustrative inputs for transparent math.
How do I change the numbers?
Open the prefilled refinance calculator and edit balance, rates, terms, or costs.
Educational only. Last reviewed: August 9, 2026.