I absolutely get the mathematical reasons. 

There application wasn't the greatest but they were the most qualified at the time and I knew they could mathematically afford it based on the data in the credit report. 

Because we desperately want and need these questions answered, and because of the basic "truth" of people paying more for more and less for less, and because we believe (mistakenly IMO) that appraisal is nothing more than math and therefore a mathematical solution must exist out there somewhere if we could only identify it, that it is in fact possible to answer these questions/valuation problems.

What's interesting about this is the use of the word speculators, because if there's a quantifiable increase in value based on changes made to a property based on mathematics and past personal experience, is it really still speculation?

Check your situation to see if that is the case.You just need to mathematically model your options and see what comes out the best.I am skeptical of your statement that the refi is with $0 closing costs and no points. 

It's almost a mathematical certainty.

I have a mathematics degree along with my masters in finance, with a concentration in real estate.

All that debt sounds good mathematically, but in times like this does it still sound as good?

@Shafi NossWithout an example, I can't be sure we're on the same page.Say you bought a property for $200k 10 years ago, depreciated $50k of it, and are selling it for $300k now.You have a $150k capital gain, $50k of which is taxed under 1250 recapture rules, and $100k under long-term cap gains rules.Now, a mathematically flawed example below, just to illustrate the concept.

While, it will take longer to close mortgages, mathematically I believe it will save interest expense.