One year ago, Jamie purchased a house valued at $480,000. To avoid the insurance (PMI), she decided to pay down 21%. She got a 30-year fully amortized fixed rate mortgage at 4.75% interest rate and her closing costs and discount points were about $5,600 (around 1.5% of loan amount).

4. Today, she received a mail from her bank that the market interest rates went down to 3.7% with a 1.5% closing costs. Do you think Jamie should refinance?