As an economist, I’d say stay put. I was in a similar situation as yours last year, but decided to sell b/c I knew I was going to move within the next couple of years. In fact, I got a job offer and had to move last year anyways (the new employer even paid for by closing costs, RE commission, etc., but I digress).
If you are happy with your house and you expect to live in the same town for at least 5 yrs, then don’t sell. Instead, focus on paying off your mortgage faster, by paying double the principal, or more. (Of course, if you invest your money at a higher rate of return, considering the interest tax deduction, then this may not be the best course of action).
If you cash out, the money you put into a CD will barely cover the rent of a comparable house. And anything that pays higher than a CD will definitely be riskier too.
