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Updated almost 3 years ago,
Understanding Cash Out Refinance Interest and Points
I am in the process of cash out refinancing one of my rental properties to complete the BRRRR method. The person doing my loan has offered me two choices:
- 4.5% with 2 points or 4.875% with 1.375 points
I have calculated the ARV of the property to be $70,000 and I will be able to cash out refinance 70% of the loan. The amount I anticipate to be given to be is ~$50,000. My question is: what option is better if I am pursuing the BRRRR method and playing to buy and hold this property long-term? Thanks in advance!