Can i refinance and get a lower rate on mortgage+15k in cash to pay off credit cards?

Hey D... you have a somewhat complicated situation... low credit score, but not impossible to work with, unemployment issues, unique property, and maybe, maybe not rental income.. Best advice I can give you is to contact a local mortgage broker, not a bank, and apply with them.. they can look at your complete profile and find the right lender for your particular scenario... WilliamAcres.com

FHA allows for a cash out refinance up to 85% of the appraised value, so it might be possible. You didn't indicate if you are back to work, but you will be required to document employment/income sufficient to support your new debt load. If the home is classified as a 1-family home, it is doubtful an underwriter will count the rental income. The best thing to do is contact a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com

if you are lloking for cahs out, your LTV wil be limited to 80% (168K) for a conventional loan with no PMI and 85% (175,500) for an FHA loan. FHA will have an Up Front Mortgage Insurance Premium of 1% ofthe loan amountthat gets included in the loan amount and a monthly mortgage insurance premium.

There is a possibility you could do this, other info would need to be known. Your credit score is not a problem. Give me a call to discuss further. Thanks. Michelle 201-962-3555

FHA loan with a lender that has flexibility to maximize the program's understanding that things can get rough from time to time for families. I can not emphasize enough that timely payments are everything even when times get rough and it appears that you were able to keep up with them. 85% on a cash-out but remember that appraisals typically come in lower than we all expect lately. The new loan will have both upfront MIP and monthly so this needs to be considered even if your rate is lowered. Standing by for your questions.