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Thanks for the perspective...I'll show this post to DH tonight.

I hope you understand what you're getting into there. ING Direct only offers ARMs -- Adjustable Rate Mortages. Specifically, they offer a product called a 5/1 ARM. Its rate is fixed for 5 years, then changes once a year based on some rate index. The term is actually 30 years.

We are aware of this. We don't plan on staying in this house for five years. So why refinance? A couple reasons...we haven't done it before, so our rate is 7.85% (I think) and my job is shaky, so we're trying to find ways to save money, and refinancing will save us from 200-300 per month. (we had planned on moving this fall, but my job insecurity has pushed that back--DH isn't bringing in any income at the moment, so this is all on my paycheck. And we won't lose the house if I lose my job--we've got no other debt, healthy e-fund, etc.)

The other alternative we looked at was refinancing with the bank who holds our HELOC (different from our 1st mortgage). They'll roll the HELOC into our refinancing. This isn't an ARM, but a fixed mortgage. The downside to this is that the HELOC was used to finance my husband's business, so rolling it into our mortgage will further muddle the line between the personal and business pots of money. (The biz has now reached the break-even point, so further withrawals from the HELOC should be unnecessary.) The closing costs here are a bit higher than with ING; that's something we looked at as well.

I admit I know little about mortgages and refinancing. Based on this additional information, do you have any further thoughts?

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