Should i refinance at a higher rate ?

[Account Closed]

Hi Guys, I would like to get some advice regarding my mortgage and whether I should refi or leave the payment as it is. My real estate taxes and HOA are about to increase . I receive $1450 for rent.

My currently mortgage has a principal balance of $115k with 4% interest. I had the mortgage since 2012 and an original loan of $168k. I paid down the principal down substantially and my monthly payment is $1204. I expect this to increase because the HOA dues and real estate taxes will bring the new payment to $ 1416. If I refinance the payment will be $1018. I really just want positive cash flow on a monthly basis, but will i be increasing my debt in the long term with refinancing at 4.5% ? I have 18 months left on my current mortgage to continue paying Mortgage Insurance that will total $2532. I will have to buy the rate down at $1500 to get it to 4.5 %. The lender is paying ALL closing costs. They are not adding it to the back end of the loan either. Is it worth it ?

[Jon Magnusson]

Originally posted by @Account Closed:

 I really just want positive cash flow on a monthly basis, but ...

I think you answered your own question in your question! ... You don't cash flow if you're out of pocket is the same as your income.  Nice thing here is you have a tenant paying down your mortgage.