Suppose 4 years ago you borrowed an FRM for $2,000,000, 30-yr amortization, 8% annual rate, 10-yr maturity. Given the increase in your property value over the last four years, you are now eligible to obtain a $2,2000,000 loan, 30-yr amortization, 10-yr maturity. However, the new loan comes at a higher rate of 8.5%. Your refinancing costs will add up to $40,000. You are expecting to sell this property after five years, and you are planning to use the additional $200,000 as a downpayment towards a new project available to you now. What is the cost of (effective interest rate) of obtaining $200,000 through this cash-out refinancing option? Should you (cash out) refinance?