new loan with lower interest for 10 years, then you are paying less in interest. Essentially, you have a 10 year loan with 5 % interest right now. If you refinance, you could have a 10 year loan with about 2.25 - 2.5 % rate, and thats with no costs added. If you know that you will be there all 10 years and not refinance, you can add a little in fees and probably get better interest rate