If you’ve been looking to refinance, you haven’t missed the boat yet. Yes rates have been moving up, but don’t avoid refinancing because you can’t get a rate in the 3’s. Look at the whole picture. Here’s what to look at. If you can lower your monthly payment by $200 or more, or if you can keep a payment similar to what you have now but take years off of your loan, that’s progress. The savings may not look like much on a monthly basis, but if you’re going to take 2 years off of your loan, what does saving two years on your house payment add up to?
Lastly, don’t confuse closing costs with escrow reserves required to set up your loan. Your own taxes and insurance are your money, not closing costs. If you really want to get the most bang out of your buck, bring the escrow money needed to closing, rather than rolling it into your loan – that way you’re not paying interest on your own tax and insurance money.