<prompt> Human: I bought my house 3 years ago for 155,000. I currently have a 30-year FHA mortgage where I still owe 142,000. 4.19 interest. I have to pay mortgage insurance in the amount of about 200 per month. The mortgage insurance is required for the life of the loan, no matter what my equity is.The house appraised at 155,000 when I bought it. Its now worth 210,000 Dallas... so I suddenly have more than 20 equity. I can refinance for 4.00 interest, 20 year conventional mortgage. The mortgage insurance goes away and the monthly payment goes down about 20 a month.I save 7 years off the mortgage and get a lower monthly payment. Whats the catch? When Im buying a product like this there has to be a downside, right? I cant figure one out. Ive been asking around for an opposing view and someone suggested I ask here.Assistant: Youll have closing costs associated with refinancing. What are they? Also, I would consider refinancing at a 30 year rate, itll drop your monthly payments even more and you could take the money saved from your improved cash flow and invest it elsewhere. Since money is so cheap, and as long you can achieve a better rate of return from investing that money, you should come out ahead. Human: The closing costs are 3100 rolled into the loan 14.6 months of mortgage insurance payments 211 per month. I shopped around and this was the best reply Ive gotten so far.  <response>: Youre paying 3100 to get rid of 200month in PMI. That alone is a simple payback of 16 months. The lower rate will make it a little shorter. If you plan on staying there for at least the next 2 years, refinancing is a good deal. 