SaintMichael: We originally purchased @ an interest rate of 4.75%. Our Principal & Interest Payment is $1143.05. A refinance at 4.125 (today's rates), would actually be worse. The Principal & Interest with PMI would be $1165. (I would assume I would have to pay PMI... unless there is some way for a new lender to honor the past upfront buyout of PMI that I financed into the loan). Thanks for your input. Option 2 is definitely my preferred choice.
goldielocks: Probably a good call on not moving close to September. The only way we could do that and not have it be crazy is if we truly went minimalist to the extreme helping for an easy move. Egress window is an interesting approach with living in the house. Although it really isn't that soundproof downstairs, so if you or anyone else has any soundproofing ideas that would be great. As you can see by my suggestions, I'm always down for anything, but I don't know if others would be o.k. with a crying baby, or if it would be best to have roommates with kids period. Yes, cash flow would most likely be very very tight with one income. I think it's possible, but it would be a stretch. My monthly guaranteed income is $2980 after tax, and roughly $3915 with expected bonuses after tax. Our minimum fixed expenses total $2779/month (Gas & Electric ($160), Student Loans ($492), Car Payment($297), Mortgage ($1557), Internet ($45), Cellphones ($64), Vet Plan ($31), Garbage ($25), Water ($44), Geico ($55), Netflix ($8). So... we would have $200/month on a "guaranteed" basis of wiggle room for everything else. Food, Gas, Repairs, Healthcare, etc. As it currently sits, Shannon brings home $2570/month.