Just found out my lender in Sacramento charges 2 points more on a cash out refi than a plain rate and term, and I'm fuming | Cash Out Refi - nhfree.com
Did you try calling around to a few local credit unions instead of just the big banks? I got quoted the same junk fees on a cash out and a smaller CU in Roseville came back way lower with no extra points for the cash out part. Maybe it's just me but shopping it around saved me more than any haggling with my old lender did.