You know, I don't think any banks do no cost refis...??? I think you would need to check with a broker or a mortgage company. Unless you have a mortgage through Wells Fargo, right now they have a program where you can refinance without any cost... including no title transfer fees, absolutely nothing, which is what we just did. We were paying 4.375 and went to 3.875 (couldn't get lower because we don't owe enough, I found that odd talking to various brokers that in order to get the best rate we had to owe more) so just the cost of an appraisal (and according to everyone I talked to you can't get a loan at all without an appraisal, even if you just had one a few months ago, but maybe that is just in my area since home values have dropped so much?) and title transfer fees and paper moving costs would've had us just breaking even over the life of the loan so if there were any costs involved it wouldn't have made sense for us... and that's even without any points or origination fees or other lender fees involved.
I don't think it makes any sense to get a 20yr loan... again, maybe this varies in other areas? but I know ime 20yr loans pay the same rate as a 30yr loan (and 10yr is the same as 15yr) so it makes more sense to get a 30yr loan and then amortize your payments as if you had a 20yr loan... it would be exactly the same as a 20yr loan only with the option to pay less if you ever need to. This was something I looked into with getting a 10yr loan but when I found out the rates weren't any better than a 15yr loan we decided to just make higher payments on a 15yr. I have to admit, it is tempting to pay less if you have that option though! But if you can get all the costs and a set rate and then find that the difference in payments times 360 (for a 30yr loan) is more than the cost plus 6 (or however many payments you've already made) times the new payment, it might make sense (depending on how big the difference) just to do that and start paying 250 more each month... with a lower rate you will be paying that down even faster, so it seems like a good idea to me (and if the costs really are only one month's payment than you can just pay that right up front since you will be skipping a month's payment when you get the new loan so your balance won't be negatively effected either).