My refi has been funded this morning. I closed in at 2.625% with an outstanding mortgage principal of 325,000 with CashCall Mortgage. Closing costs of $995. I am sure you can find better rate than what you posted. What I noticed is that since there are a lot of refi applications, not everybody is keen on refi'ng low balance mortgages. So, you must shop around a bit. But based on your situation, I don't think it is worth it. Do the math and figure out how much interest are you going to pay on the remaining 25 year term and how much total interest are you going to pay with the new terms. If it is going to be lower and your monthly payment is going to be lower, then take in the closing costs and find out how long it takes to breakeven. If you plan to own the house for that amount time, then it might be worth it. In my case, I was saving $300 per month and about $36,000 of total interest so It was a no brainer as I would be breaking even in 3 months on the closing costs.