However, if you are going to own your home for at least five years, that's probably long enough to recoup any refinancing costs you incur and to realize real savings on lowering your monthly payment. If it is going to cost you nothing to refinance, you can gain even more. Many lenders will allow you to roll the costs of the refinancing into the new note and still reduce the amount of the monthly payment. Also, there are no-cost refinancing deals available.
In any case, it pays to consult your lender or financial advisor, or run the numbers yourself, before you refinance.
See Also >> Financial Calculator #9 - Am I Better Off Refinancing.
For information on refinancing, the following booklet may be helpful:
In March of 2009, then President Obama, initiated the 'The Home Affordable Modification Program' as part of the so-called 'Stimulus Bill of 2009.' The program is designed to provide relief to homeowners in danger of foreclosure due to unaffordable or rising monthly payments by giving lenders incentive to refinance.
See >> Real Estate Guide: Owning Your Home - Foreclosure, Home Affordable Modification Program