Some people believe they shouldn't refinance more often than once every two years. The determining factors are if you'll lower your payments and plan to stay in the home long enough to recapture the cost of refinancing. If so, you should consider refinancing.
Interest rates have actually come down significantly in the past 12 months and even more in the past 24 months. According to the Freddie Mac Primary Mortgage Market Survey®, rates on a 30-year fixed rate mortgage are down to 3.6 percent in August 2012 compared to 4.27 percent one year earlier.
For example refinancing would save the homeowner $67.04 per month and they would recapture the cost of refinancing in three years and nine months based on approximately $3,000 of closing costs.
Click here to make your own projection on a Refinance Analysis calculator.
A good place to start is by contacting your current mortagage holder. If you would like recommendations for other lenders so you can compare, let me know. Also, closing costs vary, so it's not just about the rate.