Refinancing my loan, is it worth it?

Most lenders have a policy called "Net Tangible Benefit", which means that your total costs for refinance has to pay for itself within a certain time period. The rule of thumb is, if your costs are $3600 to refinance, and you save $100 per month for 36 months, then you "break even" at that time. If your loan is an FHA loan, then guidelines state your payment must be reduced by 5% or more, so in your example of $1700 per month, you would need to save at least $85 per month to fall under that guideline. So looking at your scenario, it doesn't seem like you can save enough. However if you have other reasons to refinance, such as buying out a spouse after a divorce, or needing to get some cash out, then none of these guidelines would apply. WilliamAcres.com