Owners rethink flexible loans: Higher interest rates make some refinance adjustable mortgages.

Byline: Gloria Irwin

Aug. 27--T wo years after becoming a new home owner, Michelle Ketler of Akron and her husband have already been faced with the question of refinancing. The decision was easy. Faced with a $200 monthly jump in payments on their adjustable-rate mortgage, they decided to lock in with a fixed interest rate. They also borrowed money for renovations to their home, which they bought as a bank repossession. "With today's economy, you can't put a whole lot of faith in adjustable rates," Michelle Ketler said. Last week, she mailed the couple's first payment on the new loan. Their total debt went from $77,000 to $88,000, once the closing costs were rolled in. Their payments are now $780 a month, higher than the adjusted $725, but the new amount includes both property taxes …