5.75% with Refinance cash out loan make sense?

[Grace Fukuda]

Hello,

I am currently working with a local mortgage company (I have been working with my current house's purchase and refinancing.) for 30 year cash out refinancing options -BRRRR procedure.

The current value of the house: 70k, and cashing out the max amount for 30year.

The local mortgage company’s agent advised me that the mortgage amount is too low for her to push forward. (Usually it is 55k) To proceed, she ended up bumping interest rate up to 5.75%. The closing cost is about 2k.

It would go under my husband’s name who has a credit score of 784. I understand the cost of refinancing would be more expensive because it is 1) an investment property 2) cash out option. However about 2% incresment is not something I would accept to move forward. Do you have any idea to find out any other options?

Thank you!!

Grace