Sell or Cash Out Refi

[Anthony Cosgrove]

Hello BP!

I am considering refinancing my SFH that I have been renting for the last 3 years. Below I have listed the current numbers and the refi numbers based on a concervative value of 105k. My problem is that I am wondering if I would be better off selling as I have a lot of my own money tied up in this house since we bought it in 2005 at the height of the market. I think I could do much better with the 40-50k I would get if I sold. Based on my research for the neighborhood I think it would sell for 110-115k. So what are your thoughts?? Should I sell or refi?

Current Numbers:

Purchased for 95k in 2005

Note Balance $59,830.20

Rate 5.75% 30 yr fixed

Monthly Payment P/I $675.35

Rent $1000.00

Cash Out Refinance Numbers

Cash Out $13,885.73 + about $1500 from our escrow account

Debt to be paid off $60,000.00

Est Prepaid Items/Reserves $2160.27

Est Closing Costs $3289.00

Loan $78,750 15 yr fixed

Rate 4.5%

Monthly Payment P/I $831.09

Rent $ 1000.00

Rough Numbers If I Sold

Sell Price 110k

Loan Payoff 60K

Commissions/Closing costs 8k

Cash to buy a better deal 42K

So based on all this, what are your thoughts BP?!  Thanks!!!

[Steve Vaughan]

I would not pay $3200+ to get $13k cash, but I do like the lower rate and expedited payoff, although only 5 yrs less.

In my area, a 1% single-family in a decent area is a good investment to keep.  Folks from better rent/value ratio areas will say it's a dog.  What is your market like @Anthony Cosgrove? Can you do better in your own backyard?  Do not sell this and go turkey, I mean turnkey.     Good luck and keep us posted!