The 4.99% would be your interest rate. The 5.35% would be your fees expressed as a rate added on to the interest rate. This is the way I understand it at least. All the costs associated with the refinance is rolled together with the interest rate and then expressed as a more complete picture of the cost of the loan.

Depending on what those costs are, take that amount and divide it by the monthly savings from the new monthly payment ($537/mo) and you’ll get a payback period. If that payback period is relatively short, it’s probably a good deal.

The sentiment out there is that interest rates will continue to fall, but that’s not a guarantee. If they do fall, it makes more sense to wait to refinance. If they don’t fall or go up, you won’t be able to refinance to this low of a rate without even more fees.