People often ask this question, when is the right time to refinance. The best time for any homeowner to refinance depends on so many variables. The most important question you can ask your self is how long do I plan on staying in my current home. If your answer is forever or for more than 7 years, then generally it is a good idea to take the savings on a refi. Obviously, costs are incurred when you write a new loan, and generally the break even point is anywhere from 1.5 years to 5 years to recover the monies spent, versus the montly savings you will recieve on the new mortgage payment. Just because you lower your interest rate, doesnt mean that you will save money. After 30 years, yes you will pay less for the home at a lower rate. Many people refinance for the wrong reasons, to pay off debt. The reason it is wrong, is because it is human nature to become adapt to your surroundings. So if you pay off all your debts, chances are, 5 years later, you will rack up your debt again, car repairs, dentist, ect. Now you still have the same debt and you also have a new loan and the 30 years started all over again. Also, when people say, oh with this refinance, I am saving 300 a month. Most people will get used to having an extra 300 a month in their bank, and they will find a way to spend that savings. If you can trust your self and your significant other to do the right thing, keep your debts at 0, and also save every penny you save off your new mortgage payments, then refinancing is right for you. In my years of funding loans, too many people called back 6 months or a year later to do it all over again. My advice for everyone is to change their money beliefs, and their spending habits. If you took the money you saved and applied it every month to your mortgage, you will pay off your home, years sooner.