Should I refinance for better cash flow?

[Joe M.]

Hey BiggerPockets

So currently have a decent chunk of equity in my rental.  It has a good tenant in there currently and is cash flowing about $300 a month.  

I asked and if I refinanced I would have a worse rate and add about 10 years to the loan...but....lower my month payment by $200 or so.

Would you? Am I dumb for thinking about doing it?  What are your thoughts?

[Stephanie P.]

Originally posted by @Joe M.:

Hey BiggerPockets

So currently have a decent chunk of equity in my rental.  It has a good tenant in there currently and is cash flowing about $300 a month.  

I asked and if I refinanced I would have a worse rate and add about 10 years to the loan...but....lower my month payment by $200 or so.

Would you? Am I dumb for thinking about doing it?  What are your thoughts?

 It's all math.

How long are you going to hold the property?  What's it going to cost to refinance?  Do the savings outweigh the cost?  If yes, refinance.  If no, sit tight.

Stephanie