wrote...

I was wondering if it is possible to get a home equity
loan, then in a couple of months refinance both loans as interest only?
For example, my principle is 370K I plan on getting a 30K equity loan.
Then in a couple of months I want to refinance both loans into a 425K
(appraised value) interest only loan.

WHY?!?

You will likely pay fees for the HE loan, then pay fees again for the refi. In
the end you will have debt of $425K instead of $370K, cash on hand of $55K less
all those fees, and the prospect of a huge balloon payment somewhere in the
future.

In addition, you will pay the interest on the money for the HE loan while you
have it, plus you will have to pay it off for the big refi. That will increase
the stated APR by a significant amount.

What will all this refinancing get you?!?