What are good financing terms for a cash out refinance?

[Mike Schorah]

My local credit union offers up to 75% LTV. They have 10, 15, 20, and 30 year loans. Anything above 10 years has a 12-year balloon payment. I can always refinance it. The rate is exactly 1% higher than what the rate is for a principal residence. There is also points associated based on the LTV and the term that I select. 30-year would be mid-to-high 5s (1% higher than current 4.625% for a cash out refinance on a primary residence).

Another bank has a year waiting period, up to 75% LTV, needs 3 years of tax returns, $500 application fee, appraisal fee. They look at cash flow and need a DSCR of 1.20.

Another bank has a 12 month wait, 80% LTV. They have an 8% interest rate on non-QM mortgage. They have a Fannie Mae at 5% with 5 points OR 6% with 2.5 points.

[Alex Hunt]

Hey Mike, 75% LTV is typically the max for cashout refinance for banks,credit unions or commercial lenders depending on state maximum. Fee's seem high to but that is a new normal now as rates are on the rise industry wide, many lenders are trying to build in a buffer in case of further adjustments that may come. On the note of the bank needing 12 months of "seasoning" that is also pretty standard for banks but some commercial lenders or credit unions do not have that. It just mainly comes down to sourcing the right lender for you and your long term plan.