closing. Effectively, you're trading off a little bit higher rate in exchange for lower (all the way down to zero) closing costs. In other words, if you want to pay some closing costs, you'll get an even better rate. But if you can get a lower rate than you currently have with no closing costs, it's kind of a no brainer to do the refinance.

I mentioned this a little higher up, but I've done two refinances in the last year, both no cost. My original rate was 3.75% (on a 30-year conventional loan). Last March, I did a no cost refinance that brought my rate down to 3.25%. And as rates kept falling, I checked again this last November/December and was able to do another no cost refi to bring my rate down to 2.75%.