Hey have any of you thought of or have refinanced? I ask b/c I'm trying to be 'safe' and save some money.

My bank says I could refinance both home/truck under a "Cash Out Refinance" and save about $300 a month @ 5%. However, should I sell, trade-in, or wreck said vehicle, the balance due is still tied to this new 1st mortgage. So, having an extra $300 per month sounds nice, but the potential for loss is not.

I could refinance my home at a lower rate and save $100 a month. This sounds safer.

Also, my father said to check into a non-escrow refinance. Have any of you heard of this? This type of loan I'd pay the home owners insurance and taxes out of my pocket rather than escrow. I had no idea that I was paying interest on my loan's escrow account! This applies to most mortgages! My father said when he refinanced at a lower rate non-escrow account he saved about $3,000 a year (after he paid the insurance/taxes).

I plan to stay in my home for about 5 years. I want to eventually sale it and find land or an existing home on land for my horse, pets, and myself.

I wonder if rates will continue to drop a bit?

Also, I'm so worried about the economy.