Refinance and Libor Question

[robertrk]

What is the name of your state? MD

We were just approved for a home refinance and payoff of our chapter 13. Our atty does not think it will be a problem. However, I have a few questions before I sign the loan papers. The loan is a variable rate loan at 8% which right now seems to be a good rate considering we are in bankruptcy. Our first mtg is 7.5% and our second is 16.29%. So combining the two mtgs and paying off the bankruptcy sounds good. However, I am leary about signing a variable rate loan vs. a fixed rate loan. This variable rate loan is also based on LIBOR. I have researched what LIBOR is but I am not sure I totally understand. I don't want to sign the loan, and then each month have my mtg payment increased substantially and right back to where our mtg payments are now. Right now with both mortgages we are paying 1959.00 a month. Our payment, if we sign the loan, would be cut in half. Sounds good, but for how long? Now the other thing I thought about is that we could sign the loan and then perhaps in two years or so, refinance for fixed rate? Can you please shed some light on this for me before I make a decision? Thanks very much for your input.