SHOULD I REFINANCE:
1. Current Interest Rate
Simply put, if you can get into a lower rate mortgage, a refinance is worth looking into. That said, consider how long it will take you to recoup closing costs.
For example, if you paid $450 to refinance your mortgage to a lower rate and your payment dropped by $150 per month, it will probably take you just THREE MONTHS to break even. Generally, at least a half point to a full point reduction in the interest rate will save you enough money to cancel out the closing costs within a few years.