How to make equity in personal home work for us

[Kristin Romine]

Hello bp and thanks for any help in thinking/talking through the options. We purchased a 3/2 sf home in Washington 4 years ago with a va loan at 3.25% for 189k, total of 193k including costs. Now owe about 177k and can sell for about 240k or rent for 1500/month. Monthly PITI is currently 1137/mo. We'd love our current home to become our first rental property and are willing to occupy our next investment property while rehabbing it. How do we make the numbers work best? Refinance our loan? We won't get 3.25% interest again because rates are higher now, right? Our credit is excellent, military pay is nice and stable, so we should qualify for a competitive rate I believe. What else do we need to consider? What's the best way to use the equity in our home to move forward? Is refinancing our current mortgage a good idea? Thanks again,

Kristin