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Is cash out refinance higher rate?

by scott.harvey113 from Aspen, Colorado. Nov 18th 2013 Reply


Merritt Noel (MerrittNoel)
#29 ranked lender in Colorado - 7 contributions

Yes. Cash-out refinances are considered a riskier loan and therefore they are charged a higher interest rate because of the perceived risk. You are also capped at 85% LTV on a cash-out refinance.

Nov 18th 2013
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Nicholas Moss (Nmoss@dfgbancorp.com)
#221 ranked lender in California - 4 contributions

Hello Scott,Cash Out rates get Higher with certain loan to value. if the loan to value is 70% and below the rates are beautiful. Once you get in higher loan to values rates do jump. But this is also depending on Fico Scores. Please call me at 877-677-5535 Ext 220

Nov 18th 2013
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Corey Seitz (Corey_Seitz)
#36 ranked lender in Colorado - 24 contributions

Hi Scott, Our cash out rates are the same as rate and term refinances on government and jumbo loans. Conventional rates may be higher depending on both your credit score as well as the Loan to Value. Thanks, Corey PS. We have experience lending in Aspen. Please let me know if I can price something out for you.

Nov 18th 2013
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Pete Bass (PeteBass)
#31 ranked lender in Connecticut - 476 contributions

Depends on the loan to value on your cash out refinance- different investors havedifferent pricing. Speak with a local lender or community bank -

Nov 18th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,237 contributions

In general, yes, but it partly depends on the type of loan (conventional, FHA, VA, etc.) and how much the loan is compared to the value of your home. As stated prevously, if the loan is less than 70% of the value of the home the rate is pretty much the same. There are lots of factors that affect the interest rate...

Nov 18th 2013
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How close to 70% will count? I don't think we will be completely below 70%, but I think we are close. It really depends on who appraises our home and a few thousand up or down, so it seems like 70% is the magic number but what about say 73% or 74%? Will the rates go up by how much?

Nov 18th 2013
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,626 contributions

Lenders deal in finite numbers.. so 70.01% is still greater than 70% and would be priced higher.. how much higher will depend on the lender your using, credit scores, property type, etc.. realistically, it shouldn't be that noticeable.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Nov 18th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,237 contributions

Scott, the cost at or below 70% are different than at 70.01 but sometimes I work with my borrowers to help cover some of the refinance costs which keeps the loan amount lower - that could be an option. How much the difference is will partly depend on your credit score. Let me know if I can help: pdumouchel@primelending.com - I have no issue lending in CO.

Nov 18th 2013
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Mark Schmidt (markallenschmidt)
#47 ranked lender in Colorado - 21 contributions

Hi Scott, what all the other people said was correct. Have you considered a reverse mortgage for a cash out? If you are 62 or older, have enough equity and are looking for a line of credit or to get ride of your monthly payment. It is worth looking into. You might be amazed at what can be done. Just a thought, let me know if you want to chat about that. Mark 720-206-4539

Nov 18th 2013
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Blake Kleckner (BlakeK)
#388 ranked lender in California - 257 contributions

A LTV of 70% will not get you the best interest rate. 60% or less will. Fannie Mae and Freddie Mac guidelines, which all lenders follow if they want to sell there loans to them (and they virtually all do 100% of the time), require a 60% or less LTV in order to avoid a higher interest rate or cost for a cash out refi, and that's only if the mid-FICO score is 680 or above. At a 60.01% to 75% LTV, the additional cost for the the refi would be .25% for a FICO score of 740 or higher, .625% for a FICO score of 700 to 739, and .75% for a FICO score of 660 to 699. This is additional cost, not an increase in the interest rate. For example, if your refi is for $300K and you have a 728 mid-FICO, the loan would cost you $1,875 more ($300K X .625), which could be paid for by going to a higher interest rate with a greater borrower rebate. I only do loans in CA, but I believe this info will help you make a decision about your refi.

Nov 19th 2013
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