[quote=ninaprincess]If I still owe $348000 with 3.875% and $1655 monthly payment and refiance again at 3.375% and still making the same original payment of $1655 how many less # of payment will I make? Or how much of today’s money do I save? The math is too difficult. Do you have a program for this?[/quote]

nina…It’s really not that hard…You got all the tools on the internet for you to do the grunt work…

I’ll try to outline it for you. Warning. I’m heavily medicated right now. So my thinking isn’t exactly clear… You can let other piggs correct me….

Go to your favorite interest rate calc.. I use the one on iGoogle…

1.Punch in $348000 as loan amount with 3.375% interest rate.
a)Your monthly would be $1,538.49
b)Your total loan amount would be $553,858.13

2.Punch in your old loan amount with 3.875%
a)Your monthly should be $1655
b)Write what your total loan amount would be lets say Y

3. Figure out how many months of payment you made on your previous loan .. Let’s say it was 3 months… Add up the interest only part of your first 3 months of payment using the amortization table…(This is money you kinda threw in the trash to the bank)

4. Subtract (2b)-(1b)-(3)

That’s roughly how much it benefits you to refinance…

Big assumption…This assumes both your previous loan and your current loan had no points or cost…
If your previous loan had points and costs, then subtract that from #4 too, because that amount is also in the trash… So roughly

(2b)-(1b)-3- (points or cost in previous loan)….

If you can get 3.375 no cost, and your previous loan was 3.875…It makes sense to refinance. Because your loan balance will be lower the long run and your monthly is also lower… Win win..