cash out refinance

They could be but lets take a look at the percentages (Ill round them off to keep it simple since I dont know your exact loan amount) Using what you gave - 209 + 25 - 235 - 235 / 325  = 72% 235 '/  391700 = 60   At 60% you would get a better rate than at 70 or higher but thats seems like a big jump Your score is on the lower side so I am kind of surprised that they had offered you such a good rate - the 4.125% seems kind of low for the score with a cash out refi They may have made a mistake and are now covering their tail but there is no way to know that -  most banks wont do a conventional cash out refi with scores that low - I ran the scenario on our pricing maching using 9 different banks and none came back with pricing - so they dont allow it - they did come back with fha at a lower rate - but that always has MIP now so it isnt attractive unless there is no other option -  Good Luck - if they can make it happen I would take the 4.5% and run Brian Barnes Mortgages in all 50 States Brian@AimWithFocus.com