Is refinancing the right move for me?

We just bought our home in June. I talked to my lender and asked about refinancing since I heard rates are low. He told me it was possible even without 6 months of payment history.Here are the specs:Original loan$639,200 @ 4.875% =$3,382.70Balance for next month is $636,832New loan$625,500 @ 4.5%= $3,169.32 We need to pay the loan down from $636K to $625K to qualify to conforming loan limits.My lender said he would take care of all costs, so we don't need to bother with that (which sounds a bit fishy, so I would like a second opinion); maybe the rate is a bit higher than market average which might suggest that is used to cover the closing costs?I have the $11K and my reasoning is I can get a better return on the $2,556 saved per year than I can on leaving the $11K in the bank, even at the 4% return I have in my rewards checking account. (I like the safety of cash though which is deterring me from moving forward)Any thoughts or opinions would be greatly appreciated by dolphi_748_199 from Miami, Florida. Oct 6th 2011 Reply