Thanks for the replies, especially the very detailed reply from NoSoup. I have been debating on this as I wait on them to ask what my final numbers are to take out.
The rate will be a fixed 6.12.
I bought this house back 23 months ago for 140k with 0 down at 5.5%. I racked up my credit card debt quickly to 30k by purchasing new furniture and doing improvements on the house (and a trip to Vegas that didn't help) and my payments for all my credit is around $550 a month.
I found out that the value of my home was now over 200k, so I decided to go through the steps of a refi. The appraiser appraised my home at 235k. Not a bad investment for 23 months
Even thought it's a higher interest rate, my payment is only going up $120 to take out the extra 30k and I won't have to pay PMI or the $500+ a month on credit minimum payments...
Now I'll have a way to start saving anyways, so I may just keep that money in the house and save it the old fashioned way.