Refinance Question on Rental Property

[Josh Lovvorn]

Good morning.  

I'm new to Bigger Pockets.  I have a rental by accident.  We bought a house when we moved to Eugene, OR and have grown out of the home.  We moved to a bigger home, and decided to keep the first home for a rental after we determined that we could not sell as much as we wanted because of some nearby construction.  We have a great renter in there now and will plan to be there for a while.  Obviously we started this process not knowing anything, so I'm trying to learn.  

My question is this.  We have a 15 year mortgage on this home at 3.375%. Monthly payment is 2312, taxes are 5600 a year, and insurance is about 45 per month.  Current balance is 242k and estimated value is 400k.  I want to do a cash our refinance to a 30 year loan to get the monthly payment down and to use the cash to pay some high interest debt that I'm cleaning up.  Is it better to buy points up front to have a lower monthly payment, but get less cash out, or take the higher interest rate with a higher monthly payment and get more cash out?  

Thanks so much.