Thank you for the responses. We appreciate it.
The CU rep called me back and said the title fee is a flat rate and that they'll charge the exact cost when they get that figure. So we'll see. He also said he'd submit a request to reuse our appraisal from 11-12 months ago. Not promising, but I suppose there is a chance there. I also told him we saw yesterdays big news - feds aren't increasing rates. He said he'd "run the numbers" again today and get back to me with a new quote.
Our current rate is 4.625% and we have PMI.
The last quote does not have PMI. Not sure how it went away.
Wife and I plan to live here for 8 more years and then purchase a market rate home. Why 8 years? My PSLF (public service loan forgiveness) will eliminate my student loan and we'll have wife's student loan gone in just 4-5 years. As I said in OP, this reduction in rate will go towards wife's student loans. We're currently throwing more than $3000 a month to her loan, so this $80 a month is not a game changer.
I will contact two other banks and see what they can do. Thanks for the suggestion/nudge to do so.
I see a new post - RH - how do you not have closing costs?