Refinacing options

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we are trying to decide if it is worth refinancing since we are on a arm that has just applied as of Nov 2006 rate has gone up to 10.5 from 7.5%.
It cannot go any higher than 13.5 % . Right now we owe 120,000 but I think the home will maybe appraise at 135,000 . Which I am told brings us to a 89% LTV .. Is it advisable to just wait and pay the diffrence instaed of paying 5000.00closing costs and becoming upside down . I live in Simpsonville SC and this area from what I understand does not go up in property value very fast . Is there a website out there I can check on the percentage of growth in my area?
We do not have very good credit middle is 624 with a BK7 out 1 year.
If anyone can help please do we need the right advice can not afford to do anything wrong right now since we are trying to rebuild our credit which I know is a long road but we ran into a bad situation.