I bought my house June 08 at 6.5%... my lender is saying I should refi to 5.5% for 5,000 total costs, I am skipping a mortgage payment saving me 1400 and getting 500 back, is this wise?

In addition, I will be 70\month lower on my payments and my original loan was 166,000 and now will be 171,000

Is it a fixed or adjustable loan

Have you shopped with your own current lender who could do a refi with no or little costs ?