Sell or cash out - 3% interest on 1M loan or refinance 15 year investment

[Kate C.]

Dear BP community- Thanks in large part to this community and a hard work - we are in a good position but have to make some decisions about a possible move for a new job.  We purchased a home in CA three years ago for 1.5 M and have a 1M loan at 3% interest. We anticipate we could sell it for 1.7M. We may need to move for work unexpectedly. We are considering the smartest way to purchase a home in the new location- sell our home and use proceeds for a downpayment or rent our current home and use a cash-out refinance from a rental we have in DC. I have read a great deal about this issue and realize this is not a unique scenario and very good position to be in.  We have an investment home in DC with equity (750K) on a 15-year loan at 3% due to be paid in 5 years. While at some point I know we will need to talk to a financial advisor who understands our specific situation, I am curious if any of you in this community have had a similar situation, or given this bit of information, would have advice. Do we let go of a large low-interest loan to get the money needed for a new downpayment (estimated 750K profit) or tap into equity from a rental since the interest is deductible and get a new higher 30-year loan on an investment that is almost paid off?  Thank you very much for any ideas or suggestions. 

[Kate C.]

Hi Henry- No- it was purchased as an investment 10 years ago with a 15 year loan at 3%. Thanks for your time and consideration.