Is refinancing a good idea?

My answer is always the same... You should refinance if the math makes sense. Only you can determine if it makes sense in your situation. next, refinancing with the existing lender is almost NEVER the best deal, so be sure to call a local mortgage broker too. Finally, this Loan officer is being less than honest with you, and trying to deceive. There is NO SUCH THING as a no closing cost loan. All mortgage loans have closing costs. You can choose to pay them multiple ways. The Loan officer is being creative, and they are really saying "No out-of-pocket" closing costs. The best way is out-of-pocket, but almost no one actually does that. The next way it to add them into your new loan amount. This is the most common. So your new loan (in your case) would be $328,000 + closing costs. Another way is to take a higher interest rate on the new loan, so you pay them over time with the higher rate. You can pay a little of the closing costs in the rate for a small rate increase, all the way to all the closing costs hidden in the interest rate for a much higher rate. Finally, the last way is you can do a combination of any or all of those options. I lend for homes in MN, WI, IA, ND, SD. I can be found at JoeMetzler.com - Cambria Mortgage, NMLS 274132