My husband and I would like to refinance our current first and second home loan into one loan. I think our home will appraise around $165,000. Our current first mortgage is $120,000 at 5.75% interest. Our second mortgage is $23,000 with an interest rate of 11% (ouch!). Total loan amount seeking is $143,000. Our current first loan is a VA loan (not sure if it matters). Here are some of my issues/questions: If our house appraises at $165,000 (it should as that was the value given to me in 2007 when we considered selling), we will not have 20% equity, will this automatically prohibit us from refinancing the first and second together? In Oct. 2008 I personally declared and had a BK discharged. This does not include my husband. Each of our credit scores now are at least 700. Is my prior BK (discharged 3 years ago) going be a big issue which would prevent us from refinancing? If the above to issues do not automatically prevent us from seeking a refi - how do I find a reputable lender? There are so many out there and honestly, with the banking mess, I am scared to to scammed. Who can we trust??