30 year mortgage vs. refinance. Pros vs. cons?

[Jack Zhuang]

Hey guys,

I hope to buy more real estate after the holiday season. I have two options for financing with my current lender, either take out another 30 year montage on my W-2 income or refinance on one of my rental properties. But I'm not sure which option is better for me in the long term.

Here are some details:

Last time I checked, I got quoted low 4s for 30 years with 25% down and mid 4s for re-fin. This would be my 3rd montage on my W-2 income and I would be maxed out on my income to debt ratio. My concerns is that I will not be able to have access to like a car lease or a small loan for a loooong time until I can bring the ratio down a bit. I'm still single in my late 20s and I don't want to over stretch myself at this stage of life.

On the other hand, I can extract my equity out of one of my rentals to support another buy. It seems to be a smarter thing to do but there are some issues. First, my agent wants me to take out the re-finance before going shopping which means I would be paying the interest before purchasing anything. The market is slow at the moment and I don't know when will I buy anything and start generating income. Secondly, the interest is definitely higher and increases my operating cost. What do you think what I should do??

Happy holidays,

-Jack