Should I Cash-out Refinance in AZ?

[Michael Mai]

Hey all - 

I hope all is well with everyone and the family =) ! I am in a difficult situation, hope you all can help with this tough question, 

SHOULD I DO A CASH-OUT REFINANCE NOW OR A LATER DATE WHEN I NEED THE CASH FOR A PROPERTY? 

I have an investment property in Mesa, AZ, currently cash flow positive 30 year @ 3.875% 

I have enough equity to take out $70K, 30 year @ 4.125% if I do a cash-out refinance now. 

My question is should I do a cash-out refinance now even though I don't plan on purchasing a house anytime soon? <-- I don't want the money to sit in the bank with 1% 

I also already have a separate housing fund saved up on the side so this $70K would be an addition into my savings account. 

Thank you very much for any advice in advance! 

[Stone Jin]

@Michael Mai

You can arbitrage using the 70K, as long as you can get a return greater than 4.125% then you would be net positive.  Also, it's good to pull out the equity while you have it and the interest is super low.  Let's say you don't and the equity stays roughly the same but interest rates are up 1 point, then this decision would be harder.

Best of luck.