looking to refi curernt mortgage and cash out to consolidate bills.

First, contact your existing first mortgage lender and let them know you wish to get PMI removed.. Most likely, they will want to have the home appraised.. The cost to you should be about $400 +-... if the LTV is below 80%, and your loan is more than 2 years old, the PMI should be dropped.. Once you do this, you can contact a local bank and apply for a 2nd mortgage.. If you use the same lender you have now, it's possible they will use the same appraisal so you wouldn't have to pay for it twice.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

A new second mortgage will not, by itself, remove the PMI. If your plan is to use some money from the new second to reduce the principal balance on the first mortgage below 80%, that might work. Depending on the availability of a second equity loan and the appraisal, you may still be better off with a new first mortgage.

A 2nd mortgage will provide opportunities to remove PMI on the 1st mortgage by reducing the loan to a value at 80% LTV or below. The max combined LTV with a 2nd mortgage is 90% with a 700 credit score. I also have loans upto 1.2 million at 90%LTV with no MI. This is one to consider to avoid a 2nd trust and have 1 mortgage.

I would think that your best course of action would be to see about getting a refinance with the LTV showing less than 80%, so you have the PI go away.After you have done that, then contact your bank to work on a Home Equity Line of Credit - to do the consolidation.The reason for that suggestion is that for a conventional mortgage, a cash out mortgage refinance would be limited to 80% -- which it sounds like youmight be right at. Also, by doing that first, it will be a lot easier than having to re-subordinate the Line of Credit during the refinance.For best results, contact a local, licensed mortgage professional to get things worked out smoothly.

My option? A second mortgage is great if you have a short-term plan to pay it off - say less than 5-years. If you want to stretch it out longer, it is probably advisable to wrap it into a new 30-year fixed. People always forget that PMI can be removed.