We have a current mortgage of 117,000 with wells fargo at 5.6% 30 yr. fixed and have been paying on it the last 4 yrs at 714 a month,not including taxes or insurance. We have $20,000+ in credit card debt. We want to refinance the mortgage with cash out for$22,000. The new mortgage would be 5.8%, 143,100 with payments of $847. The house has been appraised at $220,000. I'm disabled and my husband makes around $29,000. Is this a good financial decision? We would like to sell later but nothing is selling in WI. Thanks

I wouldn't refinance. Since you have sufficient equity, I would get an equity credit line and use that to pay off your credit cards.

I have checked into 2nd mortgages and for 25 yr fixed at 6.5% to get a $20,000 loan I would pay $150. A month making payments higher. If I went with equity home loan my husband will run up more debt. His job isn't secure and you need $50,000 min. equity loan. Add that to existing mortgage payments are too high. I just want to know if wells fargo can be trusted and if their proposal was good. I can't afford a lawyer to look at the papers.

No you don't want a home equity LOAN or 2nd mortgage. That's not what Iam suggesting. I'm talking about a home equity LINE OF CREDIT (HELOC). This works similarly to a credit card. You have a maximum you can use (the $50K), but you only pay on the amount you use. So if you take out $20K, I believe you payments would be lower. I have a HELOC that is currently at Prime - .75% which is around 4% now.