re: Refi question

Client refi'd end of 2005. Pulled a bunch of money and invested in the market. House value crashed, went underwater. Stock market crashed, freaked out, pulled out of market which locked in losses. Then, lost his job. Had to move out of state to get a new job, and had to do a short sale on his house.

Refinance to get a lower interest rate, or maybe to spend the proceeds on the house in improvements if they will actually benefit the house. Take the money you save on interest each month, add to principal. That's the best way to refinance.