Refinancing fees for 30-yr Conventional Loan

[Eileen L.]

Looking for advice...I'm currently refinancing out of my VA loan at 2.75% to get a conventional 30-year at 2.875%. The reason I'm even doing this is because I now have over 20% equity to avoid PMI fees and free up my VA loan entitlement. This would give me the opportunity to eventually rent this house out and buy a new primary residence using my VA loan (I would not have enough to use my VA loan entitlement for two homes). I've been in the process of this refinance since Nov and had to pay a $450 appraisal fee out of pocket to get appraised, since I'm looking to get cash out. Now the refinance is ready to close, but they're charging me $5k for origination fee/points. I haven't been able to talk to them since just seeing this, but does that seem like a lot? With fees/taxes, my total for refinance will come out to 12k and I'll only able to take out $26k. I wanted to use the cash out for a down payment on another property (conventional loan), and eventually buy another primary residence (VA loan).

Any thoughts on the final numbers? Any advice or thoughts would be appreciated. Thanks!