Cash out refinance on rental property

[KATHY H.]

Recently purchased my first rental property (basically turn key) two months ago with cash. The property is around $90k. Now I would like to refinance this property to get some cash out. Called around for a couple quotes, and here’s what I got: low to mid 5 interest rate, 30 year fixed, with 4,500 closing cost. My question is 1) the interest rate is higher than what I’d expect. The lender said there is something to do with the current environment. I was wondering what rate is normal nowadays. 2) the closing cost for a $90k property seems high. Is this what it is or I could call around for lower closing cost?

Greatly appreciate your answer in advance!

[CJ M.]

@KATHY H.

Is this a conventional loan or commercial/portfolio loan? If the latter, 5% is not unusual at all.