[theFONZ]

I currently have a house in Panama City, FL that is being rented out. I am about $30K underwater on it at the moment, and my rate is 5.5% with a VA loan. Depending on the appraisal, I should have enough in savings to pay it down to refinance at current rates. My original plan with that money was a downpayment on a future house, but I think this would be more beneficial. I'd rather not use it to refi, but I doubt banks would do anything that far underwater.

My first question is, is this a good use of that money? Other than that, I only have one car loan at 1.9%APR.

Second, does anyone know anything about, or have experience with, the VA IRRRL? Looking at that, I may be able to refi, even upside down supposedly. Basically, I want to get the lower rate, but want to use the least out of savings as possible. Any ideas?

Third, where have people refi'ed through and had a pleasant/inexpensive experience?