The devil is in the details. The details that are pertinent in this case are:

1. What are you going to do with the money in the short term? Park it in a CD?

2. What’s the total amount of loans you’ll have out? $600-700K + current balance?

3. What’s the rate you’ll qualify for on a cash out refi? Cash out refi’s are usually higher than regular mortgages.

4. How much time and capital is left on your current mortgages?

5. How does your debt load with the refi compare to your current income?

Other options may include refi-ing one house and using it to completely pay off your primary residence. You still get the tax deduction of the current loan amount, however one house is no longer subject to a loan and mortgage lien.