REFI VS CASH-OUT REFI

[Stephen Krause]

Hi all-

Currently debating on refinancing my primary mortgage (previously refinanced 4 years ago to a 15year @3.2%) to a new 15year @2.25% (Option #1) which would lower my monthly payment and increase Cash Flow.  Option #2: Cash-out Refi to 15year @2.75% which would give me enough to buy my 3rd rental property (approx 54k) now or in the next month or so.  This would increase my monthly payment about $30.  Increasing CF with option 1 is 'safer' and allows me to save faster however, if a great property comes up anytime soon I do not have the cash-on-hand to purchase.  Option 2 leverages my family more but gives me readily available cash for purchase.  All thoughts/ideas welcome!

Stephen

[Todd Rasmussen]

@Stephen Krause

Cash out refi using a longer term to keep the payment down is arguably the safest non option.