Where can you get 5.25% for 30 yr fixed?
I would keep the current mortgage at 5.25%. You might find 15 yr fixed at 4.75% (check out PenFed), but 30 year rates are nowhere near that low (5.675 is lowest I have seen 30 yr fixed).
If you do lower the payment, it only works in your favor if you keep the same repayment term (make sure you payoff new loan on same date as existing loan) and invest the savings from old payment to new one.
If you spend the savings of the payment, you will cost yourself time and/or interest. If you increase the date of repayment from old loan to new loan, you cost yourself time and interest as well.
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