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Multihoming is often used by large enterprises and stub ISPs to connect to the Internet. In this paper, we design a series of novel smart routing algorithms to optimize cost and performance for multihomed users. We evaluate our algorithms through both analysis and extensive simulations based on realistic charging models, traffic demands, performance data, and network topologies. Our results suggest that these algorithms are very effective in minimizing cost and at the same time improving performance. We further examine the equilibrium performance of smart routing in a global setting and show that a smart routing user can improve its performance without adversely affecting other users.