Delayed financing - all cash offer then refi immediately?

[Catherine Ding]

Hi BP!

Has anyone offered all cash then immediately refinanced to get the cash out? I am planning on doing all cash on an offer to make it more competitive and then getting a mortgage immediately after, but I was advised against doing this by a lender. He said that rates for cash out refi would be higher and you can only take out 80% of purchase price, not the ARV. I would be ok with only being able to take out up to 80% of purchase price, but I'm just worried about having to get a much higher interest rate. Anyone have any insights or experience with this? Thanks!

[Dave Meyer]

Technically this isn't a refinance, right? Refinance means you're replacing an existing mortgage -- that isn't the scenario you're describing. The right lender should understand this. I'm about to do this and the quote I've received are about the same in terms of interest rate.