Financing a Property

[Joseph S.]

Last year my wife and I refinanced our house and took the interest from 4.75% to 3.5%. We also went from a 30 year mortgage to a 20 year mortgage. With rates where they are at now and our property value going up we were considering refinancing again at 2.5% for 30 years and do a cash out option.

The following are what I see to be pros and cons of this option:

Pros:

1. We will more purchasing power with cash on hand.

2. We will reduce my interest rate by one point.

3. Our monthly payment will be less.

Cons:

1. We will lose the gains I made by going from a 30 year to 20 year mortgage originally.

2. We will have paid to refinance twice in one year.

My questions are: Is this a viable option? Has anyone done this before? Does this make sense or is this a poor analyzing?

Thank you.