BOONER! Remember that time we closed about 6 months apart? Good times.
Ask your realtor to run comps for you, if you haven't already. Mine did, and I estimate a value around 199k for my house and I owe about 152k on it. I've been looking into this, too. I am working on getting my house appraisal-ready to maximize my options and seeing if there is more than one loan officer I'd consider working with.
I've been playing with this site https://umcu.mortgagewebcenter.com/Default.asp?bhcp=1 to get an idea of what to expect. I also met with several mortgage officers. Here's what I've basically found out
1) My original appraisal, 2 years ago, was for 148k. I honestly expect its gone up significantly since then, since the market has picked up significantly.
2) If I want to go conventional, and I do, my house needs to appraise for about 165k to get me to 95% LTV, and for about 197.5k to get me to 80% LTV. Some lenders do PMI if you have good credit, some do not.
3) If I appraise for less than 165k, I have 2 FHA refinancing options. One is traditional, with an appraisal, and the other is streamline. I've been told conflicting info about if I can roll in closing costs. Apparently, right now banks will pay your closing costs if you do an FHA refi with them and are willing to pay a slightly higher rate - my current lender guessed something like 3.25% regular interest rate if I came up with closing costs, 3.5% if they did. If you do streamline, they use your original appraisal as the value of the house (I am suffering with a house value being treated as $128k because it was the sales price). If you do the non-streamline, they use your new appraisal as the value of the house. Given the PMI / MIP situation, I still would rather go conventional even if I'm paying PMI on a conventional.
4) Not all lenders offer all of these options. I believe UMCU is my main local option that does.
5) Loan officers can be a little difficult to get a hold of / deal with. I've found that the ones I've talked to aren't hungry enough to be good about pursuing you, and my realtor isn't taking new clients right now, either. I've now decided to not deal with my CURRENT mortgage company for my refi because they don't have the answers I seek available easily and aren't great about getting back to me even though THEY called ME the first time.
6) It's not considered a cash-out refi if you're just raising the balance to cover closing costs.
7) Play with the rate quotes on that website. Basically, start with listing your balance as your mortgage amount and your estimate of the appraised value, then go through the loan options and view the closing costs. When it tells you "costs required at closing", add that to your mortgage amount and do it again. That should get you pretty close. To figure out what your house would have to appraise for to get to 80% LTV, take the mortgage amount you'd need and divide it by 0.8
8) Here's a surprise - you have to re-fund your escrow account, even if you stick with the same bank. At least in this state you do. The good news is that at least you get that back from your previous bank so you have a nice influx of cash after you close. Also, if you end up in FHA-land, you get a credit for the UFMIP you paid last time. BTW, do NOT forget to declare your UFMIP on your taxes - you can deduct it for 84 months, up to 12 months/year.
Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
I'm watching this thread because I am also in the same situation--only I missed the May 2009 date by less than 4 months. 
I am so frustrated by the new MIP rules and dates. Our overall income has gone down, but because I am responsible and pay my bills, there is no relief, help, program, etc., for people like me, and a reduction from our current 4.75 would make a big difference.
Check out the link I posted - to get an idea of PMI amounts on a conventional loan, play with it a bit. Once you get over the 80% LTV, the same loan amount becomes a higher payment. If you click on that payment, it will tell you how many payments at that rate and then how many payments at the next one down.
$300/mo is $3600/year. You will absolutely get a benefit from refinancing long before you intend to move.
Don't "pay" for calculators with your personal info! I mean "I suggest avoiding those - they're just ways to get your info to spam you"
Try bankrate.com - http://www.bankrate.com/calculators/mortgages/refinance-calculator.aspx
If you don't want to bring money to closing, it's pretty standard to roll those costs into the loan. That'll raise the balance on it. I think there's some sort of hitch with getting cash out, but I don't remember what it is. For my own peace of mind, I think of it like this I'd rather not take my unsecured credit card debt and turn it into house debt. Plus, the extra money I'm keeping with the lower payment will pay my cards off faster.
