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It's generally a good time to refinance when you can recoup the costs of the refinance within a 2 year time period.   Your savings depends on your income, budget, loan amount, and interest rate changes. Your trusted lender can help you calculate your options.

On a conventional mortgage, when your down payment is less than 20% of the purchase price of the home mortgage lenders usually require you get Private Mortgage Insurance (PMI) to protect them in case you default on your mortgage. The best way to avoid this extra expense is to make a 20% down payment, or ask about other loan program options.

A point is a percentage of the loan amount, or 1-point = 1% of the loan, so one point on a $400,000 loan is $4,000. Discount points are fees used to lower the interest rate on a mortgage loan by paying some of this interest up-front. 

The annual percentage rate (APR) is an interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account fees such as the escrow, underwriting, and loan processing.  The APR allows homebuyers to compare different types of mortgages based on the annual cost for each loan. The APR is designed to measure the "true cost of a loan." 

The APR does not affect your monthly payments. Your monthly payments are strictly a function of the interest rate and the length of the loan.