My excel ledgers balance the bank accounts from online viewing.  

As you probably know, working at a Big 4 accounting firm offers very little work/life balance and starting pay isn’t wonderful (but has the potential to be great down the road).

Should I take the extra $200 per month and apply it to the principal of the first home balance?

My short term goal is to pay off our credit card and car loan balance and begin to save up enough capital for a down payment on a rental property.  

A couple things to note is that there will be an Upfront Mortgage Insurance Premium fee of 1.75% of the loan amount that will get tacked on to the new loan balance (Not considered in the LTV for the cash out though).

Leaving $201,975 available for the loan amount.So, we can cash out our original down payment of $22,000 and our line of credit balance of $60,000.

I don't know if they still existing, but I also have gotten 80/20 loans where you borrow both the down and the remaining balance, however, that is a slippery slope as you have to make sure (if you are keeping it as a rental) that you have sufficient cash flow after debt service.Clear as mud, right?

I think you have to find a good balance between being nice and being firm.

I have been struggling with maintaining a full time job and balancing my true dream of being a full time mom.

You'll need to set up the following new accounts:Asset Account - Escrow at new company (I set my escrow accounts up as bank accounts)Liability - New Mortgage Payable.Let's assume the following balances before the Refi:Escrow account $500Mortgage Payable - $100,000.Long Term Asset - Property - $110,000Let's assume the following balances after the Refi:New Mortgage balance - $350New Mortgage Payable - $130,000Cash out $28,000Closing Costs and Escrow - $2000As you go through the Settlement Statement, you'll pull all of these items out and put them in the following journal entry:Mortgage Payable -      debit    $100,000New Escrow Account - debit   $        350.00 (You'll find this under the settlement statement, usually labeled as so many months of prepayment of insurance and property taxes)New mortgage Payable - credit -                       $130,000Cash/Checking Account   debit   $28,000Loan Amortization Costs -       debit           750.00           This should be only a fee paid as a percentage of the loan.