To refinance or not to refinance.

[Kay Lin]

Hi everyone, 

I bought a house in mid 2014 (22 months ago) with 20% down with a mortgage loan of 308k,  mortgage payment of  $1560/month, interest rate of 4.375% and current have left over loan amount $271k.  

With refinancing...
My new loan amount will be 308k
I will receive the difference of 37k out in cash.  
New mortgage payment will be $1383 ($177 less than my current payment) x 30 year payment.  
Interest rate: 3.375% 
It's no point, no fees.  

Is this consider a profitable deal to go ahead and refinance?  Reason?   

Since it's no point, no fees, can you guys explain how the mortgage company is making money from this transaction?  

Thank you in advance!

[Nancy Curran]

I wouldn't ever worry about if the bank is making money. If they weren't, they wouldn't be doing anything to help you. If the deal works for you, take it.