So I have a dumb question. I have about $65k left on a rental, and the last time I tried to refinance, I couldn’t because the loan amount was too small and or I could ha e to pay an extra .25% with additional cost.

Since property value has increased significantly…What if I were to cash out refinance $150k, at a rate .875% lower and then immediately pay off $85k. I am wondering if my remaining loan balance would end up being lower, since essentially for the extra $85k I borrowed I would pay only about one month worth of interest