Refinance question

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Long story short I don't qualify for a 30 yr fix product through Fannie or Freddie. So my only choice is a portfolio loan at 4.65 fixed for 7 years fixed 30 year loan P&I included but with closing costs of $10,000. YEP ABSOLUTELY RIDICULOUS. 70% loan to value. Obviously this includes property taxes insurance etc.. but yeah a train wreck.  

Or I can take a deal I have with a private bank I use its a Home Equity line of credit MAX LTV 60% instead of the 70% above and I only have to pay $1500 total in closing costs. Rate is 5% and tied to prime. So if rates go up this dramatically increases.

The loan would be $350,000

Like to hear people's thoughts..