Cash Out Refi vs Selling

[Jordan S.]

Currently own a 2/2 condo @ 5.375 % (WI) with 15K additionally invested (New HVAC / Misc finishes). Looking to move to the greater Denver area but I want to hold my riverside property and would need to sell (or refinance cash out) for a down payment. Current property will do just fine with the limited supply in this city, but do I really want to refinance with higher rates or today’s market? How does the entire process play out if I did refinance (assuming I have larger monthly payments due to higher rates and more owed)?

[Erik Estrada]

Hey Jordan, 

A lot of variables here. Is this your primary residence or investment property? 

How much cash out do you need for the downpayment? If this is your primary, have you looked into doing a line of credit instead? 

What are the market rents for this property? Is it a short term or long term rental? 

When you cash out refinance you are paying off your existing lender's balance, and have a higher balance owed with your new lender. Basically hitting reset on your loan term. The payment will be higher because you will owe more, and have a higher rate, (Also depends on if you are dropping MI on your loan as well)