Do you always try to cash out the max LTV? Which of these 2 lenders would you choose?

[Jennifer T.]

I am trying to cash out refi a property and have narrowed my lenders down to 2. Which one of these DSCR loans would you pick? (Or keep shopping?)

Yes I know it's not a perfect BRRRR and I can't cash out everything but it's better than not picking up the 100k equity.

Property ARV: $450k

Total in: $350k

Monthly rent: $4000

Monthly taxes & insurance: $530

[Loan 1] (via broker)

75% LTV

1.5% origination fee ($5062)

Other fees: $1595 underwriting + $1295 processing (=$2890)

Interest rate (floating): 7.25%

5 years PPP

Monthly P&I: $2,278

Rent - PITI = $1,192

***If appraisal comes back high enough, may be possible to do 80% LTV at 7.99%

[Loan 2] (direct lender)

70% LTV

NO origination fee

Other fees: $1,395 underwriting + $695 processing (=$2090)

Interest rate (will not change): 7.375%

5 years PPP

Monthly P&I: $2,152

Rent - PITI = $1318

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I really like how there's no origination fee with lender #2 so I get to keep more of the money I pull out. But they won't do 75% LTV or it'd be a slam dunk.

With lender #1, I'm paying higher fees of $5862 to cash out 5% more ($22,500), so I only get to keep $16,638 of it. Is it worth it?

Which one would you go with? Or would you keep shopping?

[Chris Barrett]

How long would it take you to make up the difference? Exit plan strategies on this property?