<p>itstoomuch, is this what you are trying to say:
You have a $300,000 home loan. You refinance after 2 years, with another 30 year loan. The interest you have paid during the first 2 years (which is most of your payment) is gone.
So, if during the first 2 years, your payment was $38,000, maybe only 2,000 was principal.
You still owe $298,000. Now you refinance the $298,000. Let’s assume fees to refinance total 3,000. You have just paid off 2 years of your mortgage and owe more money than when you started. The 36,000 in interest you paid the first 2 years is gone. Instead of having a mortgage of $300,000 for 30 years, when you refinance, you end up with a mortgage of $300,000 plus refinancing fees for 32 years. You end up paying interest for 32 years instead of 30.</p>