April 26th, 2011 9:32 AM by Eric Fang
Lenders will be more strict on cash-out loans,especially high-balance rental cash-out.
Some clients ask whether they can get rentalcash-out for a high-balance loan. The answeris that it's almost impossible to get it withoutpaying high fees.
Let me explaian here, Fannie Mae charges 2% forrental rental cash-out; 2.375% for high-balancecash-out. So you will not pay any points if thelender can pay as high as 4.375%.
Any fixed programs can do that, and the ratewill be higher.
And when you decide to do a cash-out. You willhave to do it twice. The 1st time with very highrate and 6 months later, do a regular refinance.