Is it good to do cash out refinancing now?

[Lilly Fang]

I have a rental property with about 82K mortgage left (interest rate was 2.85% 15 yr fixed). The property is worthy about 400k now and I intent to keep it for years. I don't like to see the cash stuck in the house, but I don't know what to do with the cash if I refinance out. The stock market is uncertain and the real estate market is kind of high right now.

The loan agent told me this:
Assume house value $400K. You can do cash out up to 60% of house value, which is $240,000. After paying off the current loan balance of $82,000, you will have $158,000 in hand.
30-yr fixed rates:
- 3.625%, monthly P&I=$1,095. No point, you need to pay all closing costs (Total closing cost is about ~2500 if appraisal can be waived, else it is around ~$3000)