Cynthetiq

The bailout was supposed to do a lot of things, but the banks had no reason to comply with the desired result since there was no penalty for them not complying.

So thus even people with >700 FICO scores have been turned down for refinancing or even new mortgages.

As far as closing costs, the last refi I did required me to roll up my closing costs into the loan. This is something to consider if you are going to pull out equity in order to do upgrades and renovations. You may be better off getting a HELOC but that also may be difficult to get a this point in time.

The real person you should be asking these questions is a mortgage officer or a mortgage broker. Start that process now since it will take a considerable amount of time and effort to accomplish this process. You aren't locked into using that bank or broker until you actually fill out the paperwork and sign on the line, here, here and here.

Let the officer know what your goals are, and they will see how they can get your business. If they can't do anything for you, go to the next bank. Rinse and repeat until you can find yourself a refi.

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