I have the opportunity to refinance my rental property through the HARP program. I currently spend 660 a month (all expenses included) and rent it out for 1100 a month. I could refinance for a 15 year term at 4.00% and take 20,000 cash out ( I currently pay 5.00% on a thirty year term which has 23 years left on it). I owe 73000 currently. The refinance would take me to about 880 (all expenses included-insurance, taxes etc.)The area is going up in value, and I have expenses that are on the horizon (roof, new hvac, old kitchen and bath). I was considering this because I could have cash on hand to make the repairs when they come and continue to add value to the house, and still make a little each month. Any responses are appreciated.
Aside from a new roof and hvac, will the cost to update the kitchen and baths be worth the cost considering it seems like a decent rental as is?
I like the idea of the refi for you but not a big fan of pulling out $20k. You should refi and put leave that money in the deal. Pay it off faster.