I have a rental home that no is below $98K @ 6.0% on the mortgage. The current market value is $280K.
I though this would be a good time to take out some equity and refinance at $175K @ 5.5% , but still giving me a 6 figure equity in the home and a mortgage+escrow pmt that is still about $150 below the rental fee.
It seems reasonable to pull out te equity since it is tax free, maybe take a nice vacation for my wife & I, a vehicle for my daughter and invest the remaining.
Does this seem to be a reasonable medium of taking out equity but still keeping the 100K equity in the home. Should I take out more? Less?
This is the first time I have refinanced this property, so I'm trying to get some other opinions on what should be a good procedure for doing this.
Thanks