Cash Out Refi worth it? First Timer

[Tim Kaminski]

BP,

Cash out Refi-ing my first duplex.  Appraisal came in lower than I would have hoped for.  At this point I would only be able to take out about $19K(have about $25K invested in home), going from $1,550/mo payment to $1,350/mo, interest rate from 4.375 to 3.625%.

Just want some quick feedback on this as I was hoping for a larger appraisal which would give me more cash for next investment.  These are all positive changes but wanted to see what BP thought.  As I write this, I'm leaning toward doing it but as this is my first go, wanted to get other's thoughts.

Thanks!!

[Andrew Postell]

@Tim Kaminski if you are keeping this property for more than 3 years then I would suggest to go ahead and move forward with the transaction.  If you were going to sell...then you would be getting your money back anyway and you wouldn't have enough time to justify paying those refinance fees.  I bet if we did the analysis a 3 year look would be what is needed here.  So if the plan is to keep it for 3 years or more, then that's the ticket to refinance.