You want to cash-out refi when that's already at 63.5% LTV? And get him maybe 75% LTV, netting him (after all the fees involved) only about $70k. And then he's be restarting his amortization.

It would be a very expensive idea to do anything other than WBL if there's business revenue. Believe it or not, WBL is cheaper than a refi in this case.