Selling co-sign home

[Lynn Wong]

Should we sell the house for equity needed.

We are in CA, I am co-signing my nephew's home, currently paying $1500 mortgage monthly with 2.75% interest, it has 342K left on the loan. Equity is around 600K, We need 250K cash to help our sister. However, we can't afford to cash out refinance at this time. Also, if we do HELOC for $250K, monthly interest will be a lot. We want to downside the house to smaller home 3/2 instead of 6/4 right now. Is it better to sell, give my sis 250K and use 300-350K to get smaller home around 575K and restart mortgage 200-275K with current high interest with monthly mortgage probably the same as we are at now? Not sure what to do but we really need to help my sis. TIA!