Can’t Wrap My Head Around Cash Out Refinance

[Zachary Russell]

Hi, I’m under contract on a great deal, yet I don’t understand how my cash out refi is going to work. 

Purchase price: $105,000 (hard money).

Rehab: $30,000

ARV: $200,000

Refinance: this is where I get stuck. 
The lender I talked to does 65% LTV.

If I cash out refi at $200,000, does that mean my mortgage payment will be based on a $200,000 loan? Or will it be based on $130,000 (65%)?

Assuming a 7.5% interest rate, this is the difference between paying $909/month versus $1,398. Which one is it? How much money do I get to pull out?

Thanks for the help!