Should I refinance my mortgage?

I purchased in 2006 for 74000.00 in Cleveland Ohio, A year later I took out a Equity Loan of 15000.00 to pay for new windows, paint job, and furnace/air conditioning, energy efficient appliances, and wiring updates. My current rate is 6.5 on a 30 year fixed conventional. I went to my current loan institution recently and was told that the current rate was about 5 percent now, but was told that I could not do a refi with my current backer with was Fannie Mae due to the big mortgage crisis they have gone through. So it would be a total refi and would then get slammed with closing costs. However they told me that I would have to combine the 1st and 2nd mortgage(home equity loan) into one, and that would put me at a greater then 80% loan to value, which would require me to carry PMI (mortgage insurance). When it was all said and done, i would be saving roughly 30.00 a month on my current bill???? If i didn’t have to carry PMI it would be about 100.00 in savings a month? Have things changed again, should i retry this attempt. Should i get an appraisal, cause he told me my home would have to appraise for 103,000 to not have to carry pmi. I believe my home is worth every ounce of that, but the current market might not! any help would be appreciated.

Downtown Cincinnati

PNC Tower and National City Builiding

PNC to buy National City
October 24, 2008 – Pittsburgh-based PNC to acquire struggling regional bank for .6 billion and will get government capital injection

NEW YORK ( — PNC announced Friday it would acquire regional bank National City in a deal worth about .6 billion. The sale, which values National City at .23 per share, would create the nation’s fifth-largest U.S. bank with 0 billion in deposits. PNC is exchanging .2 billion in stock and paying an additional 4 million in cash for National City.

"We believe this strategic combination will continue PNC’s efforts to build capital strength and shareholder value," said James Rohr, PNC’s chairman and CEO in a statement. Making the announcement before Friday’s opening bell, PNC said it would also get a capital injection from the government by selling .7 billion worth of preferred stock and related warrants as part of a federal program aimed at propping up the nation’s banking system.

The two firms said the combined company would be headquartered in PNC’s hometown of Pittsburgh, while the merger would broaden PNC’s footprint in other key parts of the upper Midwest such as Indiana, Michigan and National City’s home state of Ohio.

The deal, which is expected to close by year end, concludes what has been a painful period for National City. Shares of Cleveland-based National City have been hit hard over the past year as investors speculated about the bank’s health due to its exposure to the deteriorating U.S. mortgage market. That was apparent as recently as this week when National City reported a 9 million third-quarter loss and detailed plans to eliminate 4,000 positions, or 14% of its workforce, over the next three years.

As a result of the merger, PNC said Friday that it estimated it will write down nearly 18% of National City’s loan portfolio going forward. That’s significantly larger than the loss forecasts that National City executives provided just days earlier.

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