Refinance Interest Rates

[Tanner Vandevere]

New to bigger pockets. I am 27 and until now was extremely focused on paying off my home. (Following Dave Ramsey’s advice). I now have about $100k in equity. Owe $120k was appraised at $235k. I am in the middle of refinancing to a 2.875 interest rate from 4.5. 

I have caught the bug and was considering taking out some cash to go after investment properties. They are telling me that in Texas, if I want to take cash out, the lowest interest rate I can get is 3.875? Does anyone have experience with this that can help out?