Will I get higher interest rates if I do a cash-out refinance?
Not necessarily... If your new loan to value is less that 60% and your credit score is over 680 the rate would not be effected. Once you exceed 60% LTV the impact to the rate increase in 10% LTV increments. Email me direct for more information. Rob@mortgageauthority.com

VA stream Line for to off first and second mortgage
Was 100% of the proceeds from the second mortgage put into the garage? Email rob@mortgageauthority.com

Could I get a loan to buy a house even if I had to short sale a house
You can...There would be a waiting period which would be determined by what type of new mortgage that you would be seeking. The average period is 3yrs.