My mortgage is paid off, but we still have a $46k lien on the property from county home buyer's incentive program. The lien is at 0% and we don't have to pay it back until we sell the house, or refinance. The house is probably valued around $220k.
I don't like the idea of giving up the interest free $46k loan, but with low enough rates, and high enough cash out value, it will make financial sense to pay it off and do a cash out refi.
I applied at the credit union I use and just got the rates they can offer me.
Closing costs $1,256 approximately
30 year = 2.875%, no points
15 year = 2.5%, $94 in points
75% LTV ratio gives me $165k, less my $46k lien, and less the closing costs gives me ~$118k cash to invest.
What rates is everyone else qualifying for? And where else should I be checking for the best rate? I could google around, but I'd rather focus on the best sources if anyone has had good luck with some place.
Should I keep my 0% $46k mortgage (with no payments due as long as we continue to live in the house as our primary residence) and just invest as I have been? Or should I cash out refinance and take a $165k mortgage and drop $118k into the market?