Cash-out Refi Interest Rates

[Mel Hayes]

Hello everyone, Like most investers right now I'm trying to do a Cashout Refi.  I've spoken to about 5 lenders and I've gotten a vast amount of responses to my attempt to Refi.  Some lenders have told me that they are staying far away from investment properties.  The other 3 lenders gave me different interest rates.  One lender quoted me 4.6%, one said they could do it at 3.1% (which sounds like bs) and another told me 3.8 that would cost me 1 point.  

My question is what is a good realistic rate on a cashout refi?  What is bad deal on a cash-out refi?  Has anyone (lender or borrower) done a cash-out recently?  What is the current market for cash-outs right now?

Thanks to all those who reply.

[Stephanie P.]

Originally posted by @Vince Rodriguez:

I got 2 cash out refi done last month at 3.375% they were both investment and duplex and a triplex. In Bakersfield CA. If you are paying more than 3.875% you are pretty much getting scammed! :)

Not to be rude, but there are so many factors that come into play regarding lending like the borrower's qualifications, the property's qualifications, ltv and market conditions to just name a few, that saying someone is "getting scammed" when they're quoted a rate more than your perception of today's market is nonsense.

For example. This morning's rate range for a 3 unit in Summit County Colorado (Breckenridge, Dillon etc...) goes from 2 points at 4.125 to 3 points at 3.375. Both on a 30 year fixed. You can go down into the 2's if you pay a boatload of points. All of these are at 70% ltv because of Fannie's restriction on units. Not California, but similar MSA. If you wanted to go to 75% cash out on the same 3 unit, you could go use a DSCR loan an pay the broker 2 points at 4.5% and call it a day. You could even buy it down to 3.99 with 2 discount points if you want. Scam? No. Real time rates and real time offers. Again, all on 30 year fixed.

Everybody's situation is different and each loan is different.

One girl's opinion

Stephanie