cash-out-refi to cover loan or Sell stocks

[Daniel Suarez]

Hey All, 

I purchased a home about a year ago for around $200k, I put close to $90k in fixes and did a historical appraisal that came up to $410k. I borrowed $70k from family and was planning to return it after the refinance, but the bank refinance came back at $330k which is much lower than what I expected. So my options are these. 

Cash-out-refi the property. That would give me about $54k to pay, the loan and I would sell stocks to cover the difference. The problem is that my original loan is at 3.99% and the new one would be at 6.25% (they only allow me to get 60%) So my monthly mortgage would go from $1207 to $1715, that's almost a $500 loss in cashflow. 

My other option would be to not refinance and instead sell stocks. I would sell about half of united healthcare that in reality didn't do bad, so I wouldn't be losing there and losing stocks the other half for tax purposes. 

I know this can be a very "I can't decide for you situation" but I would love to hear what would you do in my position. A couple of notes about myself. I'm a high-income W2 and I expect this house to value for a lot higher in the next couple of years. Thanks in advance.