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I refinanced a house a few years ago when rates had dropped below my current loan rate. I knew I could recoup the cost of the refinace in one year. So it sounded good.

A few things always bothered me though....

I had alreay paid about 5 years worth of finance charges under the old loan. Now, I was going to tack on another 30 years worth of finance charges under the refinance. And although I had accumulated some equity and had refinanced a slightly smaller amount at a lower rate, I was still going to pay more for the house over 35 years under the refinance than I would have had I stuck with the current 30 year loan.

And yes, I reinvested the savings in monthly payments, but can anybody keep track of how well that investment really performs? And how do you factor in the tax implications? Since then, I've sold that house and bought another. But it looks like its time to refinance again.

If anyone knows of a web based financial model that can take all of these variables into consideration when making a refiancing decision, please share.
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