My husband is an electronics design engineer. With that said I can assure you that he analyzes everything. I often tell people he puts the anal in the word. We are currently paying 7.25% interest with an 8%APR. If we were able to refinance at 5.5% interest we would save ourselves about $2000 a year in interest. My husband doesn't want to refinance because of the closing costs (which we would recoup in 18 months) and because right now we get everything we pay in on the house back at the end of the year. Is this really a good reason not to refinance? My argument to my husband is that we would have about $130 in disposable income if we refinanced. I try and tell him nobody lives year to year but month to month. Lucky for us we can actually plan a livelihood for year to year. But not to refinance because of a short-term cost and a bigger check from the government? Can someone explain my husband's logic to me? I say refinance!