1% refinance cash out option

[Victor Stillgess]

Hey everyone looking for some smart insight and possible guidance please.

I’m looking at possibly doing a refi on my home which would decrease my interest rate by 1% (3.5 to 2.5) with a cash out option of about 20K.

Was thinking of using the cash out money to use towards down payment of a vacation rental/investment property but worried about my DTI being too high if I get the cash out.

Or refine the current amount still owed with the 1% reduced interest and don’t get the cash out option. 

Will lenders be looking at my overall debt for my DTI or my monthly payments towards the debts?