Is the home almost paid off? Does it have stable rental? If so, i would suggest, ask for a HELOC to get some money out for your next house down payment, and keep renting the house. In the long run, with home value appreciation, principal balance going down, you guys networth will keep going up. When you are selling you also have to consider in average 7% of the selling price to go on fees for the real estate agents, closing costs, fixes, etc. Why not keep the home as a rental? There are a lot of tax benefits with that.