A realtor friend of mine recently gave me some great advice when it comes to home ownership; stay put and refinance or move up to a bigger house now and stay put for a long time.  Here are some of his key points:

REFINANCE ALERT !
 
If you plan to stay in your home for the next few years ....... you should look at refinancing if you have not already done so.
 
Rates on a 15 year are around 3.75% & Rates on a 30 year are around 4.375 !!!! Obviously , credit and your situation has an effect of your rate.
 
If your rate is over 5% to 5.25% .... you should look into this.

MOVE UP ALERT !
 
If you are going to be needing to upgrade the size of your home in the next few years ........ you may want to look into doing it now. 
 
My wife and I just sold our home and purchased a larger one that we plan to stay in for a long time .... So I'm not just trying to make you move, I am taking my own advice :)
 
Here are the reasons it may make sense for you :
 
          - Most experts agree that the only way for rates to go is up. So
            you can buy more house now with lower payments than you will
            probably be able to get in the future.
 
          - There are more choices since more homes are for sale
 
          - Home sellers are willing to be more flexible and sell for less
 
          - Home builders are giving really good deals and incentives
 
          - There is less competition from other buyers for the great listings
 
 
Here are some of the reasons you may want to stay put :
 
          - You will probably have to sell your home for less than you want
             (I had to take less than I wanted to get mine sold)
 
                    - However, you can easily make up this amount on your 
                      purchase. For example, if you own a $200,000 home and
                      it is down 5% ...... you will have to sell for $190,000 .....
                      but when you turn around and purchase a $300,000 that is
                      also 5% down ....... you can buy it at $285,000 ..... this
                      way you come out $5,000 ahead ...... AS LONG AS YOU
                      STAY IN THE HOUSE 5 YEARS OR MORE !