I have always found refinancing way more painful than buying a home and getting a mortgage in the first place -- there are always supposed to not be fees, and then there are, and then the lender wraps them into the loan like they're doing you a favor -- arrgh!

I agree with Steve that the old 2% rule-of-thumb is out the window. My new rule-of-thumb would be if you can save 1% for three years, you're probably good.

But do check on the prepayment penalties, because you don't want to find out when you move that they're charging you thousands for the "privilege" of paying off your mortgage.