Cash out Refi or normal refi?

[Colby Stoker]

My wife and I are house hacking. We purchased the property a year ago, completely remodeled it and are renting out our basement. We did a no-money down program when we purchased the home to make sure we had enough cash for the remodel, in order to do that we opted into a higher interest rate. We are now looking at refinancing. We already got the appraisal back and are looking at two options. Refinancing without taking money out which will lower our mortgage by about $225 (no money out of pocket for closing costs) a month or pull money out (about $8,000-$9,000 after closing costs) -‘d our mortgage would still be lowered by about $140 a month due to getting a better interest rate. $8,000 is about 1/4 of what is needed for a down payment on another property in the area. Is it still worth it to pull that money out? Or better to keep that money in and have about $80 better in cash flow a month from current mortgage?