Refinance your house at a lower interest rate (3.5 would be the new rate, currently at 5), save $49 a month off your mortgage a month, get 1K back at closing, remove a second mortgage/lien (heat pump loan through TVA) on your house BUT tack on $12,000 to an $80,000 mortgage (that appraised for a SAD SAD $108,000 last week, less than when we bought it last May....still mad about that) Oh and Chase owns my mortgage and I HATE them. I'd be lying if I said I was not happy to be shopping else where (Wells Fargo) even if they sell us to someone else, anyone else is better than Chase. I'm SO afraid to do the refinance to save money now but in the long run really hurt us when we put it on the market spring 2013. If we refinance we HAVE to include our heat pump loan. It's a lien on the house. Originally I just wanted to do credit cards but we found out we could not do that, had to do the lien first and if there was anything left we could use that for credit cards. Sadly it only appraised for what I said and they will only finance 85% of the value, so that's roughly $92,000. Our heat pump is $6,900, their fees for refinancing, the small amount back bring us to a new mortgage of $92,000 and some change. It currently sits at $80,301. That's a big jump! I'm so torn. I need outside eyes and ears to chime in. Part of me feels like, just based on research, that the bank had a number in mind in their head. Enough to refinance us without giving us too much and the appraisal would have not changed that in anyway. I read three stories from June from three people in almost exact situations. They pressed and pressed and got the bank to increase the amount it appraised for. How can that happen unless they are deciding on their own the value? Everyone I talk to just cannot believe what it appraised for. We have several friends in real estate and they were shocked and said there was no way they would sell my house for under $119,900 MINIMUM. I'm realistic. I feel I keep up with the trends. So that's another thing. Banks are shady. I've given them $500 for an appraisal that I feel was worthless. They were going to determine what they would give us, they just needed the appraisal for legal reasons. That's my gut anyway...I guess I'm just having huge red flashing second thoughts and want to hear both sides. I don't want to be sucked into a loan that helps us a little now but really hurts us in the long run. My husband really wants to do it because that 1K or so helps us breath easier the rest of the fall, into winter AND it does remove the lien which is not a big deal to us but could be when we sell (even thought it would have to be paid off to close of course) I feel like if we do this refinance, we'll have to put big money from our tax return next year into money making improvements to try and raise the value more to counter our new amount we owe, which is a gamble. If the market tanks next year, we've done all these improvements on a house that is worth less than before we made those improvements. So, do we go for it, hope the market improves before we sell so we don't end up upside down (because of the new higher loan amount) , or walk away from this refinance and keep the lien on the house, but owe less?