Should I refinance my home? Newbie and wanting to know things to consider.

I bought my home in the SF Bay Area last year just before getting priced out of the area. My home has appreciate by approximately 120k and I should have 20% equity.

We got an FHA loan with MPI of $300 a month. However because my wife is a school teacher we qualified for a state loan that paid our down payment for us. This special loan does not accrue interest and does not have to be paid back unless we sell or refinance.

I would have to roll over the state loan into the refinance. According to my mortgage broker we can eliminate the MPI and lower our payment by around $200. It would take about 18 months to recoup the cost of the refi, we plan on living here another 5-10 or even more years.

I have good credit 780+

Anything lm not considering? What other questions should I be asking?

I want to get rid of MPI and also save some on my monthly payment. Student loans and a baby on the way.