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You refi when:
1- you simply need cash- pay off bills, or whatever.
2- When the amount saved monthly can pay for the cost of the refi (increase in balance due to fees) before you decide to sell the house.
3- If, by paying the SAME amount you are paying now towards the NEW loan will allow you pay the home off faster than you are paying now. IE reapplying the savings back into the new loan.
Remember, if your rate drops BUT your balance increases as a result of fees (resulting in more interest being generated) than there's no benefit. This really becomes noticable if you have a small balance on the house. Pay CLOSE attention to 2 and 3 above.
rjp
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