We refi'ed with PenFed two years ago. I don't recall the closing costs of the top of my head but they were minimal. I can't remember if we paid the appraisal fee but we had to pay for title insurance, state filing fee, etc. If you give them a call, they should be able to give you an idea of what to expect. If your payment will really go down that much, you should definitely refi because the breakeven point should be pretty soon.-Steph
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