Refinancing Advice Needed! Refinancing a contract for deed.

[Stephen Groves]

Looking for some advice on a refi.  Here is the situation.  Currently in a 15 year contract for deed.  Original loan was 90k @ 3.5%, still owe 65k.  Approximately 10 years left on the loan and my monthly payment is $643.  Wanting to refinance with the bank, cash out my equity, and pay off my contract for deed.  If that is approved, I would get 30K cash out, and pay on 90k @ 3.8% over 30 years, mo. pymt of $420.  Closing costs on the refinance are $2500.  To top it off the person I am in contract for deed with has agreed to re-loan me the 65k @ 3.5% interest over 20 years.  I am in another contract for deed with him on another property, so we are going to add that 65k into that contract.  My new payment for that 65k loan will be $378.  To recap I get 

(1) 30k cash from the bank for cashing out the equity in the home 

(2) 65k cash from my private lender.  

I end up paying:

(1) $2500 in closing costs

(2) $420 a month to the bank 

(3) an additional $378 a month to my private lender for the 65k being reloaned to me.  

I originally was paying $643 a month, now I am paying $798 per month, but get 95K now to invest either in ETF's or more real estate.  It seems like a no-brainer decision to me to do this, but I'm looking for some more sets of eyes to tell me what I am missing.  Thanks for your input!  

[Dean Letfus]

Just be sure whatever return you can get will exceed your cost of borrowing. More real estate is a good idea but I am anti anything stock related. I call it gambling not investing :-).