Cash out refi with 75%LTV no points or 80% LTV w/ 1.25 points?

[Pablo Flores]

What do you guys think. Have a bank that can do a cash out refi with no points at 4.875% 5/1 ARM 75% LTV and another bank that can do 4.875% 5/1 ARM at 80% LTV but with 1.25 in points? Value of the home is approximately 800k. I'll be able to pull out 40k more with the 80%LTV but $8k of that will go to pay points. Thoughts???

[Brian Ellis]

Quote from @Pablo Flores:

What do you guys think. Have a bank that can do a cash out refi with no points at 4.875% 5/1 ARM 75% LTV and another bank that can do 4.875% 5/1 ARM at 80% LTV but with 1.25 in points? Value of the home is approximately 800k. I'll be able to pull out 40k more with the 80%LTV but $8k of that will go to pay points. Thoughts???

Hard for any of us to really say. All depends on your short term goals.

What are you doing with the cash? Can 32k make a huge difference in what you’re trying to purchase? That 32k will give you another 100-150k in buying power.