Cash out or lower rate?
Hi,
I am doing my first BRRRR and am about to refinance it next month. Need help figuring out which option is best:
ARV $410,000
Option 1: refinance: New loan of $225,000 no cash out at 4.25% on 30 years
Option 2: refinance: New loan at $271,500 (65% or LTV - $46,500 cash out) at 5.625% on 30 years
Is it best to take out $46,500 (for a new BRRRR) and pay 1.375% extra in interest? I think option 2 is best but want to make sure by asking the pros.
Thank you!
Franck