How Do Points Affect Cash-Out Refinance Rates in Houston?

One discount point (1% of loan) typically reduces your rate by 0.25%. On a $200K cash-out refi, paying $2,000 in points saves ~$30/month.

• What to know: Understand the full cost of a cash-out refinance so you can accurately calculate whether the math works for your Houston rental.
• Houston context: Houston's competitive lending market means rates and fees vary significantly — shopping 3–5 lenders can save you thousands in total borrowing costs.
• Action step: Compare total costs (closing costs + higher monthly payment) against the return you expect to earn on the cash-out proceeds. The spread must be positive.

Bottom Line

Cash-out refinancing costs money — but when the proceeds earn a higher return than the borrowing cost, it accelerates Houston portfolio growth significantly.