Is refinancing worth it for me.........

[stantron21]

Hello.

I am in the beginning stages of researching whether or not it is worth it to refinance my home mortgage at this time.
Here is my story:
I bought my house in 4/05 for $180K. At the time of purchase I decided to get two loans to avoid PMI. I have a 30 year fixed rate standard loan with a rate of 5.875%. My second loan was originally a 15 year variable interest rate loan that I eventually cashed out and opened up a home equity line of credit through my credit union. This home equity loan has a fixed rate of 3.5% until 11/2009 and it will be variable after that.

I owe $135K on my 30 year loan and $27K on my home equity loan and I would like to consder combining all into one standard 30 year loan. In addition, I would like to amortize the loan so that I do not go back to 30 more years of payments, instead I would like to continue my years of paying and only pay for 26 more years or less.

I plan on living in my house for a minimum of two years. I would like to live in it longer but I think I will probably get transferred.

I am not opposed to buying down my interest rate if it can pay for itself in 2 years or less.

Thanks in advance for any advice.

Sincerely,
S