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[quote=Anonymous]We owe 715K on our home that is worth about 950K.  We're currently in a 5/5 Arm from Pen Fed with an intro rate of 3%.  We think we will likely move in ten years or so, but ideally would like to keep the house and rent it out when we do that.

We're interested in doing a cash out refinance that leaves us with 80% equity in the house so we can put the $$ to some student loans that are fixed at a high rate (8%).

First question - can we refinance into a fixed rate loan with no closing costs and then refinance again back into the pen fed 5/5 arm and do a cash out?  Pen Fed's rates have dropped to 2.5% to start so it seems like even if we ended up at the highest reset it wouldn't be so bad, especially because the balance we would owe by then would be lower.  Are most loans limited though to how quickly you can refinance after you take them out?  Would Pen Fed not take us back because we just refinanced away from them so recently?

Next question - should we be looking at fixed rates only with the intention of staying in that?  Is it stupid to do an arm when fixed rates are so low?  We're not sure though if we'd keep the house when we move in ten years, and lower payments are more important to us now because we're still paying on student loans and have big child care costs.

Any insight would be appreciated.  Thanks

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