Take it from someone who has worked at 2 mortgage companies (Principal and Wells Fargo), write down exactly what they are offering. They are going to want to talk about "out of pocket expenses" instead of total costs. Here are some things I would ask.
Will I need a new appraisal?
PMI-Am I going to have to pay and if so how much?
How much out of pocket?
Here is my current loan amount. What will be my loan amount after I refi and you add in all the charges.
What is the interest rate and points? What is the APR?
Do they require an escrow account? This may not be important to you but it's good to know.
Get the loan counselors name and direct extension and tell them you'll call them back.
After getting all that info I would go to JavaCalc.com and run their mortgage calculators. Like others have said, I would be inclined to go to a 30 year fixed but also keep in mind there are other terms. A lot of people go with a 20 year term instead. It may not get you a much better rate but you will pay so much less in interest.
Other will say to just pay more each month but a lot of people talk this big game and then never do it.
Just default .It is only a matter of time before Obama takes care of it for you.