Recent Spike in Inv Prop Cash Out Refi Fees - Still make sense?

[Gary Parente]

Hi BP family - I just got loan estimates for a cash out refinance I am trying to do on one of my rentals. 3.625% for 30 years, but with 3.6% paid in points/fees (plus a $650 appraisal fee).

Loan amount = $187,500

Property Value = $250,000 (75% LTV)

Fees = 3.6%, or $6750, plus $650 appraisal

I owe ~$153K, and there's an estimate of $12K in total closing costs, so effectively I would be paying $12K to get $21K in equity. I am planning to immediately put that money down on a short term rental, but I just can't seem to stomach paying $12K in fees for $21K in cash. Just seems exorbitant. 

I may just rate/term this property to lower my payments and take advantage of the low rates. It's currently on a 4.625% loan, I can rate/term it to 3.5% with only about $6K in closing costs.

Thoughts?