I've been reading this forum with great interest for quite a while and have learned a lot. And knowledge is power, so I'm about to make some powerful changes and take charge of my finances.

Don't know how much detail you need, but I hope to get some advice and a push in the right direction if possible.

So, I am in year 21 of my 30 year FMHA mortgage with an interest rate of 9%. I could go back to 1 or 2 % if necessary, and since my husband became ill eight years ago I've held onto the FHMA just in case I needed to be subsidised again. But i haven't had too, and while he is still very ill, I think I may be ready to take the plunge and refi to a rate of 5% or less.

I owe 75 k (including recapture), the home is worth (as is) almost 400k, even in this market. However, before he became ill we had started a complete renovation and had to stop before we were finished. The house needs another 100k to be done, with extreme likelyhood of recouping that (new septic, kitchen and roof) in a few years when I sell.

The other factor is credit cards, when he became ill and had to retire we became credit card users--for out of town hotels near the hospital etc.

My goal is to pay off the outrageous crdit cards(25k), the mortgage, (75k), and next year borrow another 100 to finish off the hosue. I'd do it all at once if I could, but his health prohibits living in a construction zone for at least a year.

So, if I pay off my 9% mortgage, and my 17-27% credit cards, I'll have a significant monthly savings.

My credit is good, I will keep a lower interest card for my monthly cell phone and car fuel bill. Otherwise we won't need to use them again, we're not in the habit of buying stuff, and make do with family furniture,etc.

My income is decent, and even if my husband does not survive the next year I will still be able to make payments fairly easily.

One concern is if I borrow only half of what I need now, will that hinder me next year when I want to borrow the rest? And would i be smarter to go back to being subsidised and not pay off my mortgage? If I do that, than who knows how much my recapture will be down the line? I suppose I could be subsidised for the next nine years, and then start paying down the subsidy, but I really don't know if that is a better plan. I do know for sure that paying off those credit cards will free up a lot of monthly cash--maybe I should make double mortgage payments and stay with FMHA?

And yet another issue is every time i call FMHA I get a different answer, so i am pretty worried about it though being re-subsidised is a tempting idea. What to do?!

Anyway, I know I'll have to factor in closing costs, and am a little worried about doubling my debt next year to finish off the house. Several realtors have told me I must do it if I have any hope of making back anything I've already out into it,luckily before he became ill we did all of the work ourselves and financed nothing. The other piece is that of course I would love to finish what we started thirteen years ago, and if I end up living here forever I will not regret finishing it.

Also we have no other debt, thank goodness.

Your advice, input, opinions are all welcome, this is a huge and scary step for me!

Thanks very much.