Can anybody tell me wht they think about Option ARM Minimum payment plan for refinancing home loans?

Trying to refinance my mortgage to keep my home during my divorce. Is this a smart move or very stupid?…Thanks!

I have a 15 year mortgage on my house which I’ve been paying on for about 7 months. Its fixed at 6.74% APR. Initial amount borrowed was $ 65,016.24 and now I owe $ 63,674.81 after 7 months of payments. (my payment is $ 574.42 per month) My bank now is advertising a home equity installment loan for up to $ 10,000 at 4.99% APR. The question I have is would it be smart to take out this loan and pay off $ 10,000 of my original mortgage with the money since it is at a lower rate (4.99 vs 6.74)? In other words I’m not looking to use the money for anything other than paying off a large chunk of my mortgage in the hopes of saving some money over time. ps. I’m pretty sure there are no ‘closing costs’ involved with the home equity loan.

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