Multi-Family Cash Out Refi Question

[Jesse Howell]

Hello everyone, 

I'm new to bigger pockets and this is my first post. I have a good relationship with a local credit union and a few weeks ago (prior to rates going way up) I started the process for a cash-out refi on my 2 multi-family properties. For a 5 year loan we did a rate sheet at 3.9%, pretty good as that was the same rate I currently had with extending my rate another 5 years and pulling out cash for another investment (flipping and or out of state BRRRR deals I'm thinking).

I got a call from my loan officer and he informed me we were going to be looking more like 4.5% with the way things are going (still pretty good, but not 3.9% unfortunately).  I also have an option of 4% for a 3 year term.

The 4.5% is going to cost me appx $300+ additional per month.  I like the idea of saving and cash flowing an additional $300 per month.  My concern is if I go with the 3 year rate rather than the 5, is if rates are not better than they are now and possibly even much higher after the term.  I know no one really knows, but I'm just not sure if rates will be likely less, similar or much higher in a few years.

I think the safer bet would be to take the 5 year option, pay a little more now and if/when rates get better just do another refi 2-5 years from now.

I will be lightly cash flowing either way...

I'm very curious to hear the thoughts of other multi-family property owners, finance experts and other real-estate professionals.

Thanks in advance!

Jesse