Refinance, Pay Down, or Buy, or Other.....
I have owned a house, not my primary residence for 12 years.
Purchase Price = $108,250
Zillow Value - $130,000
Rate = 5.75%
Payment = $822/month
My disabled father has rented it from me for the last 7 years. He is on a fixed income, so he only pays $600 per month. Yes - I am subsidizing his house, which I am fine with and I can afford.
Chase is offering to refinance my mortgage, no cost to me, 4.5%, so my payment will be <$700/month.
Options :
1. Only refinance the balance of 75k and almost break even with rent.
2. Pay 25k on mortgage and refinance 50k. Have a small cash flow.
3. Take 25k, and purchase another property ( if I can find one ).
Thoughts on cash flow, taxes, etc... will be appreciated!