Take 'sleep test' before you refinance

"I owe $750,000 on my mortgage. The house is currently appraised at about $700,000 (based on a purchase price of $825,000 six years ago). My interest rate resets annually at the one-year Treasury rate, plus 2.75 points. For the next year, the interest rate is 3.125 percent. The maximum rate the loan can reset at each year is 9 percent. I have about $700,000 in cash, as well as about $600,000 in retirement funds. My annual salary is around $400,000 and I anticipate working for another 10 years, if not more."