The lender did everything wrong in this situation and now are paying for it.Now they are trying to sell the loan at a slight discount (oh did I say its a 0% interest loan and they jacked up the UPB of the loan instead of adding interest) - again another rookie mistake. 

For cash-out refinances, did you prioritize LTV (e.g., 75%+) or lower rates?

Forced Apperception (BRRRR or buying at a discount) is also a hedge against corrections.

Many states have discounted property taxes and lower yearly increases for owner occupied properties.

Best bet is to try local and credit unions, possibly may have some programs for better rates.

Maybe get 0.5% but your rate is going to be a lot higher.

When you're talking about interest rates dropping I think you mean mortgage rates but the government isn't getting rich off of those.

As a percentage closing cost as percentage goes down as value increases but we will 15X to account for closing costsNo cash flow per OP.2% market appreciation equated to 30% + 15% = 45% 3% market appreciation equates to 45% + 15% = 60%4% market appreciation equates to 60% + 15% = 75%Recognize in virtually all markets the cash flow increases with hold length especially if a fixed rate loan. 

.- in this higher rate market, i find BRRRRs to be challenging because after a high LTV refinance the units have negative cash flow.  

If you've owned for at least that, you're good.If you do a rate/term refinance, where just the hard money balance is paid off, rates will be much better.