Cashout Refinance or Negative Cashflow

[Jo Zhou]

Hi, Friends,

I have a condo valued at 350K, the loan balance is $154K. I have a 30 years fixed rate at 3.875% on it now. I anticipatethat the rate will go up in the future years. I am thinking to cashout refinance it. My option is 

1. Take out $60k, then I have a break even cashflow. To payoff my HELOC line of $60k at 5.25% interest only payment.

2. Take out 75% of the LTV, $262k, I will have a negative $300 cashflow each month. Payoff $60k HELOC, then have $42.5k on hand

3. Take out 80% of the LTV,$280k, I will have a negative $387 cashflow each month. Payoff $60k heloc, then have $60k on hand.

The new rate will be higher than what I had 3.875%, around 4.125%~4.375%. 

What would you do? To keep more cash on hand, or keep the property breakeven. I am located in San Diego, California. How should I think what is the best things to do? 

Thank you very much for any insights.