I read many post here and appreciated the excellent advise offered. I could use your advise on my situation:

TIMELINE

Oct 2005 -Original loan $242,000 , 15 year at 5.5%  House value 315,000.00

2009 Daughter went to ivy league so needed lower payments to pay tuition

In May 2009 refinanced into 30 Year at 4.625%  paid $3070 (Total Closing Cost with points and fee)

Now want to take advantage of lower rate and was looking at 7/1 ARM  3.38 and $1600 closing cost. Missed that boat. Everybody in thier articles on this site was suggesting QE will lead to lower rates but that did not happen! Instead rates went up.

I have good income (>90K); Stellar Credit Score >800. Current home value =$300,000 loan needed $198,000  LTV .66. Plan to live in the house for another 5-7 years or longer

Should I refinance?

Should I go to 7/1 ARM at 3.625 with $2600 Closing cost  and pay extra towards principal to pay in almost 10 years?

or

Should I go with 15 year fixed at 4.25 and no closing

or should I stay put with my existing loan rate?

I like the flexibility of low payment with 7/1....Please advise. Calcualtion based options will be very welcome.

Looking for a competitive rate loan.

The most important thing to consider is how long you plan to be in the home.  You stated 5-7 years or longer.  Hard to give advice on that.  If 7 years or less, then 7 yr would be best option.  If greater, then 15 year makes more sense.

It's hard for me to say without knowing your entire situation. You are correct to want to know the closing costs  and you may want to look at how many months it would take to recoup that costs.

Behind On Mortgage Payments