In order to grab a deal on a house a cash purchase is often necessary. Since I want to hold as a rental what's the best way to re-fi this to pull my cash out to buy another deal?
If you're going to be one of those that continually refinances your investment properties every 30 seconds to pull cash out, do 7/1 ARMs at the highest interest rate (yup I just said that) possible for the big fat lender credits (that's why I just said that).
Do 3/1 ARMs if qualifying is not an issue.
Note that I am not saying it's actually a good idea to continually do cash out refis and "harvest equity." I'm just saying... if you're going to do it, do it right.
I think VA loan refinance is a good alternative to decrease your monthly mortgage payment. If you are eligible for a VA or FHA loan, you can think of getting low interest mortgage from certified lenders.