Have a house and many options. Advice

My parents bought me a house on the condition that I pay them back in 5 years or sell the house and move. I am 50% on the title. I like the house and want to stay, but have been waiting for rates to go down.

Now is obviously the time, but rates are making crazy moves every day. Some say rates will continue to trend up because of supply constriction and demand increase. Others say rates will continue to go down.

I have a 699 credit score due to a 31 day late payment for something stupid that I forgot about. House is 200k and I want to take out 250 to do some remodels and consolidate debt.

I owe my parents 200 for the house, which is currently valued around 300-325. I’ve put about 50k into remodels already. So there is plenty of equity in the house. I make about 72k per year and my wife makes between 7-12k per year as a part time mom/fitness instructor, and have calculated that with expenses I can afford an 1800/month rent payment

Quicken offered me a 30 year fixed for 4.06% with 1675/ month payments. It’s the best I’ve seen from the several lenders I spoke with. some local some national. I already locked my rate on the Friday before they started the large increases.

My options are –

Get the loan now

Let the loan run its 45 day course and try to get a lower rate.

Cancel the loan, pay the fee, and wait another 6 months to see which way rates go

Sell the house, take my 40k and try to find another house. There are many reasons that I like this house. Schools, neighborhood, proximity, etc. Other than the small bedrooms and closets. We love everything about it. It does however need another 25-50k of long term cosmetic work to be in pristine condition, or for max market value, which my realtor estimates is currently 350-400k depending on how extensive I want to get.

That’s assuming the market is still stable at the time of sale. And nothing breaks in the house during that time.

Any advice appreciated.

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