I am considering refinancing my home.  I currently have a 5% FHA loan for a home that was purchased 3 years ago.  Original terms of the loan were 425,000 sale price and 410,00 mortgage.  Currently my loan balance is 392,000 and i estimate the home should be valued between 400,000 and 410,000.  My question is how much would the lower rate save me and would the increase in mortgage insurance make it not worth it.  Thanks in advance.

Looks like it would still be financially beneficial. Additionally, if you closed your purchase prior to 6/2009, then you can use the same monthly PMI and benefit from the lower rate. None-the-less, if you're @ 5%, and reduce your loan to 3.25% or lower, there would still be an immediate incentive followed by a larger benefit down the road when the pmi is removed.

Kevin-- if you are still looking shoot me a copy of your mortgage statment to rick.kinzer@everbank.com-- too may varaibles with FHA around that time to give a direct answer without seeing how your loan is structured.  First glance says you can save $257 monthly even with higher MI. That is $3000+ yearly so probably a good deal.  My toll free number is 888-908-3975.  I'm a 50 state lender and I've been lending for 10+ years.  Thanks RK