<prompt> Human: I received a letter yesterday from BOA wanting me to refinance my home. Here is the run down. I bought my house in Dec. 2010 on a 30 year fixed 4.375 Interest Rate. Paid around 127k I believe... Currently owe 114k. Home is valued at 170k on Zillow and 193 on Trulia. Also, we have gotten flyers from Realtors in the area that other similar homes in our neighborhood is selling close to what Zillow said I believe 168k was the last one I saw.Current payment: Principal and Interest of 618. PMI 85 Escrow 210. Total payment of 912 a month.They want me to refi at 3.875 Interest with 2855 in fees added onto the loan. According to the nice paper they sent, Principal and Interest would be 552, I would no longer pay PMI which I could probably get out of now anyway if I had an appraisal done and Escrow stays at 210. My monthly payment would go to 762.According to my calculations, this would mean I would end up paying 7338.31 more in the end as there would be an additional 4 and a half years of payments. However, the extra 150 a month on my budget does sound nice, and 2530 years is a long time and a lot couldand probably would change anyway.Assuming the fees stay the same, 3.56858 would be the break even point and bring my payment down another 20 a month. Id assume they would accept an interest rate between 3.875 and 3.56858 since they make more money.Would they waive the fees? I calculate theyd still make 2500more on the life of the loan based upon the payments extending out if they only did that.What is PFs thoughts on this? Should I refi? Should I try to talk the bank into playing the numbers game with me to find an even better deal? What is the most likely scenario to get this done?All thoughts and opinions are appreciated.  <response>: I received a letter yesterday from BOA wanting me to refinance my home 2855 in fees addedDont do this. You want to refinance, you go to a mortgage broker and ask them what the best refinance deal they can give you is. Bank of America isnt coming to you offering a great deal; theyre coming to you offering a deal intended to make them more money.This deal involves you paying BOA quite a lot more money overall upfront fees plus interest over 30 years instead of 25 in exchange for lower monthly payments. The way to improve your financial situation is to make the opposite trade if at all possible: work to decrease the overall amount paid by having short amortization periods 10 years, 15 years, 20 years instead of 25, 30 years, avoiding upfront fees, and making larger monthly payments.Right now youve got 25 years left and a 4.375 rate and PMI. I would bet you can get a loan through a mortgage broker that has a lower interest rate, SHORTER amortization 23 years, 22 years, something like that, AND also has lower monthly payments. 