Current risk with cash out refinance

[Matt Michaels]

I am considering doing a cash out refinance to get some of my invested money back from my house hack. I could survive without the money, but getting some of it back would be nice to be used elsewhere.

My current interest rate is 2.25%, my P&I is $1435.17, and I also have monthly PMI of $243.35. My future payment would be about $2334 - $2567 depending on what my home is valued at; this equates to an increased payment of $656 - $889 (assuming a 5.75% interest rate). My payment and interest rate definitely will go up by a reasonable amount, but I will lose my PMI and get a bunch of cash out of the refinance.

The biggest risks I see with this are that home values could drop and I could be underwater (would have to be 20%), but otherwise I see no other major risk. I just need to weigh whether the extra payment is enough to justify getting some cash out of the deal. Are there other risks I am not thinking about with refinancing?