Gregorio brings up some excellent questions, the amount owed on your mortgage vs. it's $180k estimated value will impact your refinancing options (if any). If you are refinancing $180k, the difference between 4.875% & 4.000% is $93.22/mo, 10 years is 120 payments, or $11,186 saved over that time. Standard closing costs are not that much, but if you have to pay points to get that interest rate then the costs could potentially increase to that level - based on variables (credit, loan-to-value, occupancy type such as a condo, etc.) will determine how much the costs would be for a 4% interest rate. There is a list of information needed to determine if you can qualify for a mortgage in the web reference below, feel free to come back here and provide as little or as much as you'd like in order to get better feedback.