What is the best refinancing option?

[Jared Smith]

So I am looking to cash out refinance one of my homes in AZ. I owe 160k at 5.75% over 29 more yrs. and the purchase price was 203k with payments of 1068/mo.

Good news is that my home appreciated in value and the interest rates have come down!

When appraised at 240k I can get 32k cash out and then owe 192k as opposed to 160k.

I have 3 options on terms:

1.) 15 yr. fixed at 4.125% with 1552/mo. Payments.

2.) 20 yr. fixed at 4.875% with 1374/mo. Payments.

3.) 30 yr. fixed at 5.0% with 1151/mo. Payments.

The difference between 20 & 30 yr. terms is 70k in interest savings.

What do you think is the best option?