HELOC and then refi to avoid cash out rate

[Ryan Wilson]

Wanted to know if there is away around the higher refi rates on a cash out. My thought is to get a HELOC, pull the cash, and then do a 1st refi, to pay off the HELOC. Would paying of the HELOC still be considered a "Cash out Loan" ?

Or is it just best to do the "cashout refi" and then shortly after try to refi again to a lower rate (if rate /cost makes sense)?

[Alexander Felice]

if it's a "cash-out" then it doesn't matter what it's replacing.

also, my last cash-out was 4.5% and I know regular investment rates aren't much lower. Don't spend too much time trying to save pennies.

Also remember sometimes it's better to take a higher rate if it means lower cost to close. Rate isn't everything.