Should I get a refinance cashout now during this financial bailout crisis?
I am looking to get a refinance cashout. I originally was searching for a home equity loan but after I called several mortgage banks, I began to learn more about a refinance cashout and an FHA refinance cashout – both look more appealing than a home equity loan. The banks I contacted told me that I would probably be better with getting a conventional refinance cashout than an FHA. So the following is the quotes I received from a conventional refinance cashout: I contacted Citi Mortgage (my current mortgage provider); I currently owe $ 66K at 6% on a property that is probably close to $ 150K in value. Citi Mortgage said they could get me a 30-year fixed refinance with $ 40 K at 6.125% with a monthly payment of $ 670 (but they kept talking about adding points to pay for some points – I was confused). I currently pay them $ 543 a month for my mortgage. I also contacted Wells Fargo who gave me an interest rate between 5.7 and 6% to pay $ 627 a month. They sounded more simple with a better rate.
However, I am worried about two things: should I even refinance at this time, and which bank should I go with?