Which refi terms are best?

[Kofi Carpenter]

Hi BP community.

Just received 3 refi quotes and need to know which option is best. My plan is to max a cash-out refi which will provide funds to improve my current primary reseidence, as well provide funding for my first REI buy and hold. I want a refi with the lowest possible rate and am willing to keep monthly mortgage payment equal to or below my current pre-refi loan which is $1420.

I have 17 years remaining on current 30yr loan @5.3% interest plus an additional $19k @8% HELOC w/$19K balance.

Very interested in a quote received for a 20 year fixed cash out refi ($40k after closing for me), 4.65% interest, monthly payments will be $1,453. A few bucks higher than my current payment.

The best quote for 30 year fixed is $1,228 per month but at 4.89% interest.

Do I prioritize the monthly payments which I can afford if they remained about the same, or the term of the mortgage? Adding another 30 years when I have already paid for 12 years sounds expensive. We don't want to live in this house forever (another 5 years perhaps).

Looking forward to your thoughts!

Thanks!

Kofi

About to jump into REI with this transaction.