SDowner good for you with no neg am and that you are paying off the HELOC… So the biggest variables appear to be the future interest rates and your length of owning the home.
The hard part here is that these two variables will shape the decision. My advice is to run run run numbers. Set up several different scenarios of staying x number of years and then establish different interest rates and see where you land. Some thoughts….
You may want to simply not refi and bang down the heloc with the money you save. If in the future you decide to refi you have some equity to cope with the depreciation of the home in case you decide to stay in it and refi at loan reset time.
Also the pessimist in me sees no way that the fed funds rate can not go up in the future. That pessimist has a friend named Joe recession who thinks a recession will bring rates down again… sorry I am not much help on that issue… Perry and Asianautica have insightful posts on that…
So… I feel bad for giving you a non concrete answer at this point. It is really a number crunching exercise using different variables on the rates.
