Is it a good time to refinance?

Rates are actually hovering around the 20 yr average....yes higher than the all time lows though no where near all time highs. So the answer to your question is the objective...what is the cash for? Does a higher rate now justify the purpose since you mention you cannot qualify for a Heloc. At some point rates will come back down and you can refinance to a lower rate. Or can you take steps to raise your scores? Pay consumer debt down to below 30% of available limit as an example. That will raise your scores. Hope this helps.

from a strictly rate view, replacing a 3.25% rate with current rates doesn't make sense. But, the moment you start talking about a cash out refinance, and using the equity money for something else, now all bets are off. Now you must look at what the money is going for, and does all that make sense. Next, rates are likely to come down in the next few years, so you can take cash out now, and refinance again later to a better rate. I lend in Iowa, Minnesota, Wisconsin, Florida, North and South Dakota. Cambria Mortgage, NMLS 274132. Find me at JoeMetzler.com

if you dont need the cash - dont do a cash out refinance as your rate will likely double ... try working on credit scores and locating a lender that can provide a heloc