are interest rates higher if you do a cash out refinance

Typically unless you're under 60% Loan to Value, using a VA Loan or an FHA Loan.

For the most part yes. There is an added risk layer which the end investor will charge a risk based pricing adjustment to the rebate being paid to the lender.

Hi Michelle,All answers above are correct. However the extra cost is typically marginal in respect to what you are doing with the cash out. For example, if you are using the money to payoff high interest consumer debt, then the value of interest savings and increase in monthly cash flow usually outweigh the cost of the cash out. A good loan originator will be able to assist in laying out the costs vs. savings, and from there it is your choice on whether it is worth the plunge. Have a wonderful day!

Michelle,As stated by someone earlier, unless your loan to value is under 60%, or it is a VA loan, the COSTS are higher at the same interest rate versus a refinance where you don't take any cash out.It is important to note that with higher credit scores, the higher costs are not significant.

Cash out refinance transactions do represent a more "Risky" loan for the lender, so they are priced accordingly.. however, if your loan to value is below 60%, then there is usually no pricing hits that makes it more expensive.. Closing costs should be no different whether your taking cash out or just doing a rate and term refinance.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

As stated, partly depending on the loan to value

Yes, no, and maybe... It really depends on the overall picture, and your loan-to-value of the loan you are doing. A low loan-to-value (under 60%), there is probably no change. A high loan-to-value (80%), then it is common to see about .125% higher because of the risk. Then FHA and VA usually have the same rate for cash out refinance as a rate and term only refinance.

They can be depending on your loan to value (loan amount divided by your homes value) and your credit score.