Lenders might be willing to lower the rate for a small fee to keep their customers satisfied. The key is whether the lender has held on to the original loan or sold it on the secondary market. If the loan was sold, then you'll have to go the traditional refinancing route. Some lenders include the application fee, while others do not. Ask for the rate apart from the fees, and note which fees are nonrefundable.
Property values can be a sticking point because refinancing takes more equity than buying a house.
About one in four loan applications doesn't go through, and applicants lose hundreds of dollars in nonrefundable fees. Avoid that kind of disappointment and hassle by getting yourself prequalified. Check with local real estate agents to get an estimate of your property's value. Your mortgage payment record must be good but not necessarily perfect. You can roll up-front refinancing costs into the new loan, and you need not wait any minimum time before refinancing.