Wish I had a crystal ball so that an accurate answer can be given--unfortunately none of us knows--we do know current rates are very good, and if you qualify, you can take advantage of the tax credit.... more
.If you refinance now and do not have to pay a penalty for early termination , you still will have a REFI cost to go to a new loan. The $20,000 cash needs to be invested very safely , because you might need it if your existing home brings in less than you think.The $ 20,000 still will require an interest payment that might be a lot higher than you get in aa money market account ,even after the tax impact. I could see it as a good move if you use it , to pay off a high interest credit card or car loan .This might improve your credit .
The issue about selling your house, and finding a larger one if it sells, is most likely not a big issue.There are enough houses for sale .You might be able to reserve one , with a house to sell clause .
If you really want an other house now , I would advice to put it on the market now,price it right ,sell it in a few weeks and start looking for a new house now, and forget about refinancing.
Decide on your priority ,do not be greedy and do what improves your life the most .
For the financing you should contact your bank .I am a realtor.... more