Refinance with cash out?

[awpitt]

Whatever you do stay away from Adjustable Rate Mortgages, a 15 or 30 year flat rate is best. Make sure there is no pre-payment penalty.

You don't want to be forced into selling your house for less than it's worth.

There's nothing wrong with ARMs as long as you get the write one with adjustment limits. I had one with protections limiting adjustments to 1% per year and a 5% maximum over the life of the loan. We stated out at 4.5%. Went to 3% the following year. Went to 4% the next year. Stayed that way for two years. If it’s VA or FHA, you can do “streamline” refinances as may times as you need to for about 300 or 400 bucks to lock in better rates.



Loans written in MD aren't allowed to have a pre-payment penalty. Double check though.