Cash out FHA Refi? (loan, credit card, fees, refinancing)

[crittersitter]

I am wanting to refinance my current mortgage and second with cash back to pay off credit cards and lower monthly payments out. I have about 80K equity left once my loans are paid. Does anyone know if the FHA 95% cash out is any good? I inquired with Lending Tree and they said I qualified but I felt they were too pushy. Besides, aren't they going to charge broker fees and such? My current first is a VA loan with PHH and my second is with Homecomings. Should I be checking with them? Any suggestions appreciated.

[TwiloMike]

I don't know what you mean by "FHA 95% cash out is any good?" It's a loan program, the money will be just as good as from any other program.

[TimtheGuy]

Originally Posted by crittersitter

I am wanting to refinance my current mortgage and second with cash back to pay off credit cards and lower monthly payments out. I have about 80K equity left once my loans are paid. Does anyone know if the FHA 95% cash out is any good? I inquired with Lending Tree and they said I qualified but I felt they were too pushy. Besides, aren't they going to charge broker fees and such? My current first is a VA loan with PHH and my second is with Homecomings. Should I be checking with them? Any suggestions appreciated.

Very good loan. No hits for cash out or credit score. You should be able to get 6.0% on a 30 yr. fixed.

Lending Tree

[sean98125]

You aren't going to be paying off your credit cards with this plan. You're only going to be tying their debt to your home and amortizing the credit card costs over 30 years.

Also keep in mind that you're refinancing into another 30 year loan, so you're back to paying those early payments that are almost entirely interest. If you are five years into your existing loan, you're suddenly back to paying a lot more in interest than in equity. Even if you turn around and sell the house a year from now, you're not going to see as big an increase in equity as you would with the older, existing loan.

You'd be a heck of a lot better off to cut your expenses to the bone for a year or two to leave your equity alone and just pay off your consumer debt.