Why not? You don't even have to do exact math to know it is a good deal for her. She is going to save 7.5% - 5.75% = 1.75% of the balance, or nearly $4900 per year. Her interest is almost $21k per year, so her payback is a little over 1 year. If she is going to be in that house for more than about 14 months, she makes money on the deal. When it is all said and done, ask yourself why she is paying such high rates. Perhaps she needs to work harder at getting her credit cards paid down and her bills paid on time. Today's rate on that loan should be closer to 3.25%. That is a huge difference people have to pony up, if they are sloppy about their debts and bill paying.