Here's the deal:

Current:

Bal - $57,900
P&I - $496
Mortgage Type - 30 yr ARM due to go adjustable 09/07
Interest Rate - 9.24% APR

I know the IR sucks, but my credit isn't the best either.  I working on it, though.

Here is the refinance package:

Bal to borrow - $74,500
P&I - $567
Mortgage Type - 30yr Fixed
Interest Rate - 8.375% APR

Looks like about $6700 in closing.

Now, I must do something before 09/07, that is when the adjustable kicks in.

The $74,500 includes enough money to pay off a few credit cards ($4800) and leave me about $3,000 in cash.

I've been paying bi-weekly with $50 extra each payment.

The part I don't like is $74,500 - $57,900 = $16600 more to pay of now.  But that adjustable rate is going to bite me in the butt.  

Any help would be appreciated.

Quoted: Here's the deal: Current: Bal - $57,900 P&I - $496 Mortgage Type - 30 yr ARM due to go adjustable 09/07 Interest Rate - 9.24% APR I know the IR sucks, but my credit isn't the best either.  I working on it, though. Here is the refinance package: Bal to borrow - $74,500 P&I - $567 Mortgage Type - 30yr Fixed Interest Rate - 8.375% APR Looks like about $6700 in closing. Now, I must do something before 09/07, that is when the adjustable kicks in. The $74,500 includes enough money to pay off a few credit cards ($4800) and leave me about $3,000 in cash. I've been paying bi-weekly with $50 extra each payment. The part I don't like is $74,500 - $57,900 = $16600 more to pay of now.  But that adjustable rate is going to bite me in the butt.   Any help would be appreciated.

$6700 in closing costs?
Is that correct?
If so it is a royal screw job.

The benefit in refinancing I see as minimal though you don't say what the IR is going up to. Perhaps you don't know yet but it would be useful to know.

$3000 cash?
------------Skip that.

What I'd do?
Pay off the credit cards ASAP. Everything extra into that.
Skip the $3K
Skip the closing costs---$6700????????????????
Then pay extra on the house and keep looking for a better credit deal somewhere.

I wouldn't do it and by your strategy you are going to pay a lot for that house.
Refinancing based on a 9.24 vs 8.375 rate you are only saving about $40 per month. Hardly worth the expenditure you are talking about.

Perhaps you did not do a good job of getting your point across.

You have a poor credit score?  8+% is a high mtg interest rate.   Avg is about 5.5% for 30 year fixed. $6700 closing cost is a rip too.

if you borrow the $74K you can make a lump payment on principle of the extra $16K

yes re-fi,  but shop around for better terms.

ask your local  credit union, not a full time mortgage vampire.

rates won't go down between now and when your adjustment kicks in, so lock that in.  

Have you looked at a fixed 15 year?  Won't change the monthy by much, and you should be able to get a better rate.

No.   You'd do yourself more good paying a 100 dollars a month towards the principal each month [or as much as you can, even $20 a month will save you at least 5 years on your mortgage].  Pay off your piddly bills and get your credit fixed then refinace when the interest rate offered is at least 1 1/2 - 2 percentage points below what your current rate is.

Patty