Cashout refi on Primary Residence to payoff rental mortgage

[Vinay K.]

Hey Friends, I have a 450k loan on my primary residence (currently at 3.5% for 30 years fixed). I can get 2.625℅ for 7/1 ARM. Zero closing cost. More options:

- If I pay 1000 dollars in closing then rate becomes 2.5℅

- My rental has interest rate of 4.625%@30 years fixed. Loan amount is 116k. I can take 116k cashout (still get same rate)  during primary residence refinance and payoff rental and save 2℅ interest. 

Any thoughts/suggestions?