The all-in payment decides this one. If the new payment still drops meaningfully with PMI included, the trade wins. The instinct to protect a no-PMI loan is reasonable, but the feature only matters if it keeps your total payment lower, and in a case like yours the lower rate more than covers the new PMI. Trust the net number. Run the honest break-even: loan costs divided by the true monthly savings after PMI. When that comes out around nine or ten months against healthy savings, that's a strong deal, and it holds up even if you refinance again fairly soon, because you'd recoup the cost well before then. A few ways to sharpen it: - Consider keeping your remaining term instead of resetting to a fresh 30 years, so you don't stretch the payoff back out just to grab the rate. Resetting is a valid choice only if the lowest possible payment is what you're deliberately after. - Ask for an alternate structure, like slightly less monthly savings in exchange for lower loan costs, which can shorten the break-even further. - PMI isn't forever. As equity builds you can typically request removal, so it's a temporary cost you can shed. If you want the break-even and the term options checked against your specific numbers, that's a quick free Roadmap conversation.