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Mortgage refinancing fees
tl;dr: I think you can find a much better deal. Doing a strait refi will cost you some amount of money.  However, a 2.5% fee ont top of closing costs seems really high.  You can get a quote from Quicken loans pretty quick and compare their fee.  Also I would check with a local bank, preferably one you already do business with.  The 2.5% is probably their commission for originating the loan.  If you are in the Southeast I have had great luck with Regions bank.  They are large enough, but also small enough.  Please know that I have no affiliation with either company. BTW the rate also seems high.  Doing a quick search of Bank Rate, it seems you can get 3.25% with zero fee as of this writing.  The worse deal they show is 3.46 with a .75% fee, much better than you were quoted. If you can afford it I would also encourage you to think outside the box.  A client of mine was able to obtain a Home Equity Loan (not line of credit) to replace their mortgage.  They went for a 7 year pay off, with the loan in first position, at a rate about .75 below the then current 15 year rate.  The key was there was zero closing costs.  It saved them quite a bit of money. Also look at a 10 year fixed.  It might not be much more than you are paying now.