You have a young client (Jill Morgan) who purchased a starter home about six years ago with a conventional 3.0%, 30-year mortgage. The original loan amount was $81,000 with monthly payments of $390. The total PITI is now:

• Principle and interest $341
• Real estate taxes $150
• Homeowners insurance $105
• Private mortgage insurance $ 90

$686

Jill still owes about $70,000 on this mortgage, and her house was recently appraised for $107,700. With all the talk about low interest rates, Jill calls you wondering if she should refinance her mortgage. Given current interest rates and your expertise on financing houses, what would you recommend regarding refinancing and other ways to reduce her monthly PITI?