Confused in California

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NEW YORK (CNNMoney.com) -- Question 1. We would really like to get rid of the house, but we don't want to let it go into foreclosure. Someone mentioned a short-sale. If our lender agrees, should we try this? What impact will it have on our credit rating? - Confused in California

Here's the skinny on a short sale: Basically you sell the house for less than what the mortgage is worth and the lender forgives the difference.

The problem is that your FICO score will drop about as much as it would with a foreclosure.

But that doesn't mean you can't ever take out another mortgage. In fact, you may be eligible to buy a home with a loan backed by Fannie Mae or Freddie Mac more quickly with a short sale than you would if your home went into foreclosure. Lenders generally try to encourage short sales instead of foreclosures since they cost less.

Question 2. My husband was 6 months away from his 30-year retirement and his job was eliminated. What are the chances that his pension will go bankrupt and if it does, is it insured by the government or will he lose everything? - Anonymous

As long as your husband was completely vested in the pension plan, it should still be there when he retires and files for benefits according to the Department of Labor.

Even if the company goes bankrupt, his pension should still be intact.

Most traditional pensions are guaranteed by the federal Pension Benefit Guaranty Corporation. This is a federal agency that insures pensions for companies that are unable to fund them.

You are protected up to $54,000 annually when you retire at 65. You can find out if your pension plan is guaranteed by the PBGC by looking at your Summary Plan Description of your pension plan. If you want to find out what to do if your pension plan ends, go to pbgc.gov.

Question 3. Please tell me where to look for legitimate mortgage refinance interest rates. - Kim

Well Kim start with Web sites like HSH.com or bankrate.com to get an idea of what's out there in the marketplace. But don't hang your hat on it since those figures don't take into account your credit score.

Of course check with your original mortgage lender. That's because they already have your info on file, and that will cut down on a lot of the paperwork. Secondly, they're more familiar with you and your payment history, so you'll be seen as less risky and you may get a better rate.

And don't overlook local credit unions or banks. You can find some pretty competitive rates there.