The distinction is that you already own it rather than a "purchase money mortgage" which is used to acquire a property.If you do the refinance you might be just paying off an existing loan. 

I ask because in some places this is an important distinction.  

Kyle - Looks like you have two distinction questions, 1) Whether to refinance, and 2) Whether you should move out of the duplex.

This distinction is between the purchase mortgage and the refinance mortgage.

He must make that distinction.

And then you may sign a loan application with them, you may pay some fees, rate lock, etc. but there is no formal term sheet.Therefore its an important distinction among lenders--s how long does it take to typically close from various stages?

The simple answer is that the easiest way to get your money out would be to have your land surveyed, and carve out a conforming lot, creating two distinctly different parcels of land.

A quick distinction for @Mateusz Prawdzik and the others that like my plan.

There has to be a distinction drawn between the city and suburbs.

@Scott Bottomley The distinction that Maggie made is irrelevant.