Well, I finally decided to pull the trigger on a refi. Rates have been steadily dropping at our credit union, and they reached 5.0% on a 30-year last week, so I put in an application. Got the phone call today locking in at 5.0%, with around $2000 in closing costs. We would be consolidating our 1st (at 5.375%) and 2nd (at 5.99%). The 2 payments are currently $1070 and $570, and the new payment would be $1090, so we effectively get rid of the 2nd payment. We would continue to pay the $570 as extra principal, but could stop if times got tough.

The big question mark is the appraisal. Values are all over the place so it will really depend on who does the appraisal and how many data points they get.

Oh, we get one free floatdown (we have a 45-day lock), so I will continue to watch interest rates to see if they go below 5.0%. With the Fed's announcement today, I am betting they will go to at least 4.875, if not lower. Rates on 30-year Treasuries went down .25% today, so I may even get 4.75% if I'm lucky.