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conventional mortgage - refi w/ cash out?

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A friend has been trying for a few months to refi w/ cash out with quicken.  If he chooses to drop that due to constant changes of one thing or another.....  Is that considered a conventional mortgage?  Home equity?  I as looking at navy fed and pen fed and it does not list mortgage w/ cash out as an option.

His cash out is around 22K to get rid of credit card debt.  

Suggestions on how to advise?  They are telling him his score is 670 (what quicken said) I'm sure s low because of the credit card debt.  

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Taking cash out (or not) doesn't make a loan Conventional or not.


Here are some definitions that may help.




The bigger question here is , "Does it make sense to spend $2,000 - $3,000 in fees to get bury $22,000 in credit card debt in a mortgage?"  


Also, in this environment doing a cash-out refi with a 670 FICO is not going to get anywhere near the lowest, most alluring rates you see mentioned in headlines.

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I agree but not sure how well they will listen.  Personal loans are at a higher rate  but would probably be a better option for them.  I think the house may be financed through a local bank so a line of equity to pay off?  There has been a friendly divorce and also wants to get the ex's name off the loan as i goes towards her debt to income, I think that may be the main motivation.  

suggestions?  should I ask in the credit card forum?  

Thanks for the link, will read it now!

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