VA Cashout Refianance

[Tyler Carpenter]

Just looking for some advice. Thinking about utilizing the VA cashout refinance for 100% LTV. In doing this I would lower my interest rate from a 3.75% to a 3.5% and only add about 150$ to P&I on my mortgage.

Should I A) Use the cashout to pay off my 2 auto loans @3.49%? This would free up $800 a month.

Or B) Use the cashout as a downpayment on my first rental property?