Excerpt from Money Magazine.

Some would-be refinancers are deterred by closing costs, which average several thousand dollars and can outweigh the savings from a lower rate. To trim expenses, see if your lender offers a streamlined refinancing. Not only will you cut down on paperwork, you may be able to skip a new credit report or appraisal, saving you several hundred dollars. If your lender still owns your loan (less than 10% of mortgages are so-called portfolio loans), you may qualify for a loan modification, which simply lowers your rate without stretching out your term. Finally, you may see advertisements for no-cost or no-fee refinancings. In this case, lenders generally roll their fees into a slightly higher interest rate.