I just did it and saved a ton.

Don't forget that you will still have to pay many fees, including closing costs again too.

You have a pretty good rate actually. Thanks for serving too.

Since you have no equity in your home, a refi will be difficult. You may in fact now owe more than the current market value.

Don't take a bad situation and make it worse.

Your house is not an ATM card. Refinancing to pay off your car and credit cards DOES NOT save you money…all it does is decrease the equity in your home and stretch your payments out to 30 years…so you'll be paying QUADRUPLE what the debt was originally worth.

Plus you'll be paying about $3,000 in closing costs (at minimum) refinance $10,000 worth of debt ????? That's crazy!!!!!

You are refinancing the ENTIRE loan to work in $10,000. Do you realize that?

Here is a better solution: Both of you work a part time job of 15 hours per week and have the ENTIRE proceeds of that extra job go towards that $10,000.

Start with the debt that is costing you the most, pay that one off FIRST, then start with the NEXT highest one.

You'll be able to do it in less than 1 year, you won't have to pay closing costs, you keep your equity.

Win-win, all the way around.

But please, DO NOT do this!!!!!!

PS: With FHA you MUST pay PMI for a MINIMUM of 5 years REGARDLESS of how much equity your have!!!!

Total waste of money when you already have a fixed rate loan!!!!

PSS: Don't get a home equity loan either…all you are doing is taking a car and credit cards (that you could technically bankrupt if you absolutely had to) and using your house as collateral, which means a lien instantly gets put on your house for the same debts. (b/c the HELOC is a SECOND MORTGAGE))

Why would you want to do that?

I know someone that just had their 2nd mortgage ($85k) wiped off the books, and had their interest rate dropped on the first.

Another thought. If you're not buying anything anytime soon, you won't need "stellar" credit. Credit is only important when you need it. Yes, you will pay more for certain services, but I'm sure if you save the $3k/month and have no payments for a few months, you'll be just fine.

This is a reality on every street in America. The bank had no qualms about taking all that interest from you when they offered you the loan. Now that it makes no sense to stay there, all you're sacrificing is your credit for a few years. By the way, you can get an FHA loan within a few years of foreclosure.

With so many foreclosures happening, what makes you think if/when the economy turns around that the banks won't be a little lenient to well-qualified borrowers with a foreclosure during this era of financial crisis? Will they just eliminate thousands and thousands of people from the market?

Make the decision that's right for you. Don't let neighbors etc. make you feel like you have a moral obligation to stay and ruin your life. All they're interested in is their bottom line. They had no problem with you getting that 100% loan when their values were going up, but now they seem to question you about it while their values are going down.