VA Funding Fee - closing cost is high

[Rhowela Friel]

Hello. I am new to real estate investing and my husband and I are currently in the process of doing a cash out refi on our primary home. Our mortgage currently is 480k at 2.875% and with the VA cash out refi, it would be 647k at 3% with 133k cash going to us. We are planning on using the equity to pay off our car and purchase additional property.

The refi my husband and I are doing is a VA cash out refi with a 2.5% funding fee. With the funding fee, our closing cost is about 33k. This seems like such a high amount of money to pay to pull out 133k. I'm now apprehensive to go through with it. I'm hoping I can have some help with deciding to move forward or not.

Thank you for your time.