Thinking about refinancing my home mortgage.Any input would be appreciated. (credit score, loans)

[suburbanscapes]

I purchased my house in March of 2006 and was advised to do an 80/20 mortgage to avoid PMI. My starting principle on my 30 year 80% mortgage was $269,400 with a fixed rate of 6.375% and on my 20% mortgage it was $67,598 with a variable rate which started around 9% after a year it started a slow decline to 4.5% and seems to have bottomed there(@ 2 years now)
Now almost 5 years later my principle balances are $252,000/$28,000. My credit score is high 700's (same as when I purchased). I plan on staying in home at least 10 more years. My goal of course is to pay the banks the least amount of interest possible. I plan to start shopping for refi rates, etc. very soon, and know getting the monthly payments dropped even $100-$200 will add up to a lot of $ over the years. But here are my concerns.
1st of all, I HATE the idea of starting a 30 year again(especially at age 38) and the first few years practically nothing goes toward the principle.
2nd, my wife and I expect to be doing better financially in the future. Her car loan is done in less than a year, I have 2 loans (truck/equipment) for my business with little over a year remaining.Which will free up @$2,000/month for a couple years + also expect our incomes to increase 5-10%/year. We have put @ $60,000 in home/property improvements and that puts us more than half way done with everything we want to do.
Should I try to wrap the 2 loans in one and refinance, and start 30 years again.
Or should I pay additional toward principle.(everyone says PAY THE VARIABLE OFF 1ST!) which is only @$100 in interest/month. It seems to me, putting additional toward my main mortgage would save me lots more in interest to the crook- I mean bank.
Any ideas?

[rusty78]

With interest rates as low as they are...you should of re-financed already...but it's not to late yet...what I would do...is re-finance now...then I would make one extra payment a year to the bank indicating on the payment that the payment is to be applied to the mortgage...minus the taxes of course...doing this will reduce your mortgage by 8 to 10 years...another program some places offer is a bi-monthly payment...this will also reduced your mortgage by the same...

I did both on a 15 year mortgage and paid my house off in less that 10 years...so start your research and get moving before the rates go up...

[suburbanscapes]

Thanks Rusty, makes sense. Would you combine the variable or just refi the main mortgage ?
I just spoke to a friend in similar situation. His fixed is 6%(he refied once 5 years ago) but he said combining/he would have to pay PMI at over $200/month + with the fees to refi made it not worth it. Now he's out $400 for appraisal fee + all the wasted time.

[rusty78]

I would re-fi both...if you can...but I am sure the banks will require you do both...by the way...you do not need a lawyer to re-fi...just money...if you do...call your Title Company and tell them what you are doing...they will generally do it cheaper for all they have to do is update your current policy..