I have 14 years remaining on a 30 year fixed mortgage at 7.5%. Monthly payment is $350 (includes taxes, insurance). Principle balance is about 21K. House is valued at 70K. Credit score is 710. We owe 28K on cards. This is mainly due to job losses every two years since 1997. My W2 for 2007 was 80K (working 2 jobs). We have only one installment loan (car) at $499/month.
I would like comments on re-finiancing with enough cash out to pay off the cards. An initial quote I got was at 6.25% for a 15 year mortgage and 28K cash. While I make good money, we are still nearly check to check. The monthly CC amounts are huge. We start to make a dent and something always comes up which needs attention ($$$). If I re-fi, my monthly goes down at least $1000. I can use some of that to pay down the new principle.

Something isn't adding up... if you make 80k/year, that is clearing 5k/month after taxes. You list 850 in loans (car and house). How are you living check to check? What happens to that other 4000/month? I cannot imagine even half of that goes to the CCs. What are your interest rates like?

Stevetcg:
The CC payments are about 1500-1700/month, Add the private school for 3 kids (300), swim team (200), car insurance (100), Gas (300), utilities (450). This leaves 950 for food, clothes, entertainment. My question is would re-fi be an idea to consider? Other options? A job layoff is also pending.

If it frees up a thousand or more a month to put towards other things, it sound like a good idea to me. Just remember - you have to be diligent about either saving some or putting it towards the new mortgage.

A few years ago when I had my condo I refinanced it to pay off credit cards... then ran the CC debt right back up. It's a bad place to get into.

Normally I would recommend just getting a HELOC instead. But your interest rate is a bit high. I would shop around and if you can get a 15 yr mortgage for a point or more less than you are paying now, it should be worth it. Otherwise I would go for a HELOC instead.

But Steve is correct, you need to be more disciplined about using the CCs in the future. You might want to cut down just just 1 or 2 cards.