If your estimation is correct, you would sell your home for $250K, which would bring you about $17,000 short on your obligation to the bank. If you have additional funds in the bank that could cover your shortage, that would be great. But you will still need money for a down payment on your new loan. It would be ideal if you could walk away from your existing home with a zero balance and not having to pay anything out of pocket. Then you could start fresh with your new home. If that is not an option, then you may want to consider refinancing if it allows you to save more money toward a down payment. The housing market is beginning to pick-up just a little. It is possible that in 2 years, your home will be worth more than you owe.
I hope this information is helpful. If I can be of further assistance, please feel free to contact me. I would be more than happy to run the comps on your home for you.
Coldwell Banker Residential Brokerage
(410) 224-2200 (office)
(301) 646-9888 (cell)