That's a big difference in rates; I think it's at least worth looking into it.
You may have to pay closing costs (sometimes you can roll them into the new loan), but you don't have a downpayment on a re-fi. A mortgage broker would be able to tell you how long it would take you to break even on your closing costs if you choose not to roll them into the new loan. We just re-financed today and it ultimately doesn't cost us anything in closing, since we are skipping the November mortgage payment (which was about the same as the closing costs).
If so, that 15 year loan would be very tempting to me.
Yes, we are planning on this being our "forever home".
Then definitely. I tried running a mortgage calculator to see what you would be saving but my numbers aren't adding up (75k at 5.25% is not $520, so my guess is you are either including taxes or your interest rate is higher than you think it is or this is not a 30 year loan). In any case you see exactly how much you would save over the life of the loan by refinancing.
Do you know how much closing costs would be? For us it was a no-brainer to refinance from 4.875% to 3.375% because we got our CCs fully paid, so we started saving money that first month and never looked back. But, if CCs for you are high compared to how much you'll save per month then you'll have to decide how sure you are of how long you'll be there.
Yes, we are planning on this being our "forever home".
Then definitely. I tried running a mortgage calculator to see what you would be saving but my numbers aren't adding up (75k at 5.25% is not $520, so my guess is you are either including taxes or your interest rate is higher than you think it is or this is not a 30 year loan). In any case you see exactly how much you would save over the life of the loan by refinancing.