I'm still looking at doing a cash-out refinance. Every lender I've talked to has said that points are required for a cash out right now. So I'm looking at 3.375 plus $4700 in points. My questions to the Surly mortgage wizards....is this what you're seeing on cash out? Are banks just viewing these as riskier so are making sure the'yre getting paid? Have you ever seen this before? When I was looking at this before, the cash out versus straight refinance difference was an eight to a quarter of a percentage point.
Final question. Do you see rates staying low? The points required were $12000 three weeks ago, $4700 now but with so much economic uncertainty I could see that changing again.
Wish we were in a different situation to take advantage of of the lower rates but we need the cash to pay off a HELOC so a straight refi isn't an option. On the plus side, by paying off the HELOC, I'm cutting the I'm paying on the total home debt substantially so the break even point ends up only being about two years out. This is is a good deal for us but would rather have the $4700 in my pocket instead of the lender.