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.