Thanks again for the info Todd. My large loan (7/1 ARM) is at 5.375%
and my small loan (I say small, but its over 60K) is adjustable and is
up to about 7.75%--it started off at 6%. And these are interest only
loans.

I am not paying PMI--hence the two loans. I put 5% towards the down
payment and the small loan covers the rest of the standard 20% down
payment.

Regarding your options, I will look into #2, #3, and #4. judging by
what other houses have sold for in the area, I'm pretty sure I haven't
built up enough equity to do option #4. Almost, but not quite. I'll
see when I get it appraised.

thanks again,
Matt