BRR and now time to Refinance

[Mike Kratz]

If you have the option of these 2 loans. Which one do you take and why?

Based on a 110k home ARV

A 20yr rate is at 4.99% with a loan amount of $88K the principal and interest payment would be $581. Closing costs would be $600

Or a regular 30yr refinance going up to a 70% loan to value, the rate would be $3.875% with a loan amount of $77K the principal and interest payment would be $363. The standard closing costs would be roughly $2K and the additional costs because it's an investment to get the best rate would be $1800 - total closing costs of $3800 (11 k less cash out, 3200 more in closing fees, $218 less per month)

I am looking to purchase another home and have really good credit. So, I assume there is some value in cash but I could probably be approved to finance another home. Unless structural repairs make the future home in-financeable. 

Looking for opinions or coaching for what I should do by reading what you would do. 

[Jeff Rabinowitz]

The safest loan is always the one with the lower payment. If you fail to make the payment, you will lose the house. Beyond that, the best choice for you will depend on your circumstances. The best path is likely to be different if your net worth is $50k or $5 million, if your annual income is $30k or $250K, if you have $20k in the bank or $500k. Find an accountant who is familiar with real estate investing and discuss some scenarios.