Cash out refi question

[Justin Knighten]

Greetings,

I have a townhouse with a 30 year note at 5.25%,the balance on the loan is $86,xxx. We purchased at $120,000 and it's worth about $132,000 at this point. I'd like to consider doing a refi and pulling some cash out to pay down our HELOC (variable rate, used to make down payments on properties, this would free that up as well as get me a lower rate on that money). Speaking to my mortgage broker, she says that on a refi she can get me 30 years at 3.625%, this may be worth doing for interest savings alone. However, to do a cash out on an investment property, she can't go lower than 75% LTV, which would be $104k, that part is fine, but the rate would be 4.375%. Do these numbers sound right? Should I check around, and if so, with whom should I check? I like working with this broker, they've always treated me well and the process is smooth with them, I just don't understand why the cash out would have such a higher rate.

Thanks for any insights...