No. of Recommendations: 0
Current mortgage was a 15yr refi, just 6 years remaining. Today's balance is $90k @ 5.125%, and about $1400 P&I monthly. We have no trouble making this payment.

I spoke with a mortgage lender on Friday about a possible refinance in the 3% range for 10 years. The property is currently worth about $200k, and we both have FICO scores of 800+, so appraisal and qualifying shouldn't be an issue. Household income is in the ballpark of $250k.

If I refi, I am contemplating taking some cash out of the house, possibly refinancing $125k, which would put me at about $1200 P&I monthly, and about $32k in my pocket. Not bad, but I'd be paying that payment for an additional 4 years. If I were to keep sending my current payment amount, it'd certainly be less, but I haven't tried to quantify it.

I'm sure someone will ask...why am I even thinking about a refi? Well, to get a better rate. Yes, I know I probably should have done this a few years ago. But I always procrastinated for one reason or another.

And why would I want to take cash out? Well, liquid funds are a little on the low side right now. 2012 was a lean year, as DW tried hanging her own shingle (she is now a partner at an established firm). I wouldn't mind padding the bank account in the short term while we rebuild our cash accounts. I suppose the idea of leveraging cheap money out of the house is appealing to me at these ridiculously low rates.

So what would you do in my shoes?
Stay put with the current loan - too far along to refi
Refi, but don't take any extra cash out
Refi, take a little cash out to satisfy liquidity concerns
Refi, and cash out as much as you can, it's 3%
Accelerate the payoff of the existing loan

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