What is current cash out refi on SFH primary residence ?

Question

I am currently working cash out refi with my lender who provided me rate of 7.375% from 7.57% (purchased in 2024). This is kind of my BRRRR way as CT has higher house price with equity game.
My current mortgage is 303k, appraisal came out as 488k. But I see that rate 7.375% is still high. My credit score is around 743. Do you guys have any understanding on CT market for lenders in terms of recent cash out refi ?

William Rizer · Answer

I see rates at 5.99% as PAR with borrower paid as a conventional cash out with a 743 FICO and 70% LTV. 6.5% as PAR for Lender paid Conventional. There's options that provide up to 89.99% LTV but....that would raise the interest rate, possibly to the 7.5% you mentioned. Maybe that is what this lender has priced in? Reserves, DTI, etc could all impact the rate slightly as well but minimal. DSCR rates are a little higher. I see DSCR rates starting in the low 6's. I see some lenders are offering discounts in the form of bps (that can be applied to interest rate) as well as some offering free appraisals. I'd definetely shop around! Feel free to message me and pick my brain if you'd like. I'm available 7 days a week. Smart move to reach out on here! ;) Good Luck!

J Castro · Answer

From a lender’s perspective, what you’re being quoted at 7.375% on a DSCR cash-out in today’s market is actually within normal range, especially for Connecticut and cash-out scenarios.

Most DSCR cash-out refinances right now are broadly landing in the mid-6s to high-7s depending on structure, with stronger files pricing better and higher leverage or cash-out pushing into the upper band.

A few key points on your situation:

• 743 credit score: solid, you’re already in a good pricing tier
• Cash-out refi: always priced slightly higher than rate/term refis
• CT market: tends to be a bit more conservative on leverage and overlays, which can limit how low pricing goes
• Appreciation position (303K → 488K): strong equity story, but lenders still price off DSCR + LTV risk, not just equity

What I’d typically suggest shopping or optimizing:

• Run it with a lower LTV option (if possible) → usually the fastest way to drop rate
• Ask for points vs. rate trade-off (you may be able to buy it closer to low-7s or high-6s)
• Compare a couple DSCR lenders—pricing spreads can vary more than people expect on cash-out deals
• Confirm DSCR ratio—if you’re above ~1.20–1.25, you may qualify for better pricing tiers

You’re not outside the market—you’re actually sitting in a pretty standard execution band for a cash-out DSCR in 2026 conditions.

Erik Estrada · Answer

This seems fairly high given that this is an owner occupied loan and the credit score is great. I would shop this around

Erik Estrada · Answer

If the appraisal is completed by an AMC, you should be able to transfer it. If title and insurance are already started and completed, you saved yourself about a week there.

Karan More · Answer

This is for my current SFH occupied numbers. If I shop around then it would take same appraisal process again and cost me right ? And have to wait 21 days?

Stacy Raskin · Answer

If this is an owner occupy cash out refinance, the rate sounds on the higher side with that credit score. It might be they are rolling their fees into the loan which will make the rate go up. There's borrower paid compensation (BPC) which is when the broker gets paid at the end of the loan by the borrower or lender paid compensation (LPC) where the broker gets paid by rolling the fee into the rate of the loan which makes the rate go up. If it's a retail lender (think big banks or most mainstream lenders that have lots of commercials), their rates are higher as they have a lot of overhead to pay for including advertising, staff and rent.

Austin Clarence · Answer

I just tried pricing this out. I am assuming this is a rental property and 1 unit? With 740 credit and 75% LTV pricing is closer to 6.625% to 6.75% without points for a conventional cash out.

AJ Exner · Answer

7.375 feels on the higher end for sure, but different factors can be at play.

I've seen rate adders for 2-4 units, short-term rentals, vacant properties amongst others. All that being said it does feel on the higher end of the spectrum.

I'm a proponent of getting different quotes. I would also confirm if you look into a different lender/program to inquire on how they feel about Appraisal transfers, as that might be your next hurdle.

Good luck though! Happy to connect and help if it would be beneficial