How should I refi my primary residence?

[Rodney Thompson]

I purchased my house about 11 years ago, and I am paying $1360/mo at 6.25%. I would like to refi to lower my payment and dump PMI. My question is this. Should I do a cash-out refi, pulling $11k, and pay $1150/mo at 4.88%? Or not do the cash-out and pay $950/mo at 4.2%? I was going to use that $11k to invest in a property, but I'm uncertain how to determine if that $11k is worth $200/mo. If I pay that loan out over 30 years, that $11k will cost me $62k. Now, I know that I will not keep this property for 30 years, so I need to keep that in mind. I was looking for a perspective that I may not have thought of, so any opinions are welcome.

[Ashish Acharya]

@Rodney Thompson, 

If you can get more returns with that 11k compared to increase in the rate , you should take that and invest it. Normally you would get more return if you do correctly, you will have a return more than 10-20% with correct strategy at time minimum. 

Remember you can Always payoff the loan faster.

You can’t look the interest over the 30 years. With that same logic, the dinner you eat today would give you 20k cash after 30 years if you invest today. Would you not wanna eat dinner today ?