Advice on refinancing mortgage

[Drew Morton]

I am looking for some advice on how to proceed with my current situation. 

Back story:

I purchased my first and only investment property in 2017 using a 30 year conventional loan with I believe around a 5% fixed interest rate. In 2020, I decided to refinance due to the low rates and got what I’m now considering some not so good advice to get an adjustable rate which ended up being around 3.2%. As you can imagine this decision has been eating away at me now that my interest rate has moved up to 8% today.

In 2022, I decided it was time to renovate the house as it was in need of major renovations. I was able to get a HELOC for $70k on the property to help pay for renovations that extended through Q3 of 2022. I have since completed the renovation and also just finished paying off the HELOC. Since completion, I decided to move into the house rather than rent it out so I can continue doing some small things to get it ready to rent for top dollar in 2024.

Options:

Now that my focus is away from paying off the HELOC, I am trying to determine if I need to refinance once again to get a fixed interest rate since my adjustable rate is tied to prime and most likely will continue going up. I have reached out to a mortgage professional to get a couple refinance options. He mentioned I should do this now and unfortunately will probably want to refinance again in a couple years assuming rates drop. Here are the options he provided:

1) 15 yr conventional fixed rate of 6.25%. Estimated closing costs = $4,600. Total loan amount = $125,000.

2) 30 yr conventional fixed rate of 6.625%. Estimated closing costs = $4,600. Total loan amount = $125,000.

Questions:

1)  With an existing loan balance of $116k, do I refinance or sit tight and risk interest rates to continue increasing?

2) If I do refinance, do the options I was provided appear to be consistent with what to expect right now regarding the rate and closing costs? 

3) If refinancing is my best option, would you take the 15 or 30 year?

Thanks for the help!