Should I refinance?

[Charlie Gomez]

I am currently following Dave Ramsey’s plan on finance. If you don’t know it is summed up with 7 baby steps. I’m on step 6 which is pay off your home early. I currently have a 15 year loan at 3.3% with 11 left if I let it ride with no early payments. Im rentIng thIs home. After reading about cash flow I learned that I can refinance back to a 30 year loan and get about 700 cash flow. Should I bite the bullet and pay down the house and get 100% cash flow in about 5 years with early payments or should I refiance to a 30 get instant cash flow and save up for a second home? Thanks!

[Costin I.]

@Charlie Gomez Is this your residence or your rental?

My suggestion: complete Dave steps first, then do other things. 

As for cash flow or pay off early, I just posted a longer answer to another thread just started about leveraged vs unleveraged. 

Personally, I would keep the loan and not refinance - I don't think you'll see such low rate for other loans any time soon. I would leave it alone, or just make early payments till the principal payment is substantial bigger than the interest payment (like 80/20 ratio) and then let it ride.

If you refinance (which you can do at any time), what would you do with the cash flow? Do you have the means/knowledge/opportunity to put it to work at a much better ROI than the 30 year loan rate of interest, plus tax and inflation?