Finally did it! Now time for Refi? Heloc?

[Ly T.]

Hi Everyone,

After countless of hours of research, video, biggerPocket podcast I bought my first home a year ago with the idea of refinancing to tap into equity to buy a second investment home (with the goal of renting second home)

Some numbers:

Current Home:

• Loan $240,000 @2.875% CONV (Purchased in 2020 for $310,000) 
• Monthly payment ~$1.4k
• Estimated Value as Today $436,000
  

I'm looking to take advantage of the equity to use as down payment for 2nd home, I looked at refinance rate today and ran some number with 80% LTV and they seemed higher than my current rate. On par would be around 3.75-4% (which would be monthly payment of $1.65-1.7k)

Most of the video/podcast I've seen say to refinance for lower rate, but am I missing something or doing something wrong in my calculation? Should I be looking at HELOC or Cash-out Refinance?

Sorry for the long post, and thank you for your time!