[quote=Coronita]
He could get a slightly higher rate but still below his current and get a few thousand in rebate up front, what AN use to do. He could do a slight cash out refi give himself more than a 3 month cushion of he really needed the cash soon. [/quote]

Neither of those choices does much to make your solution a better choice because they drive the monthly payment higher – which was the centerpiece of your option to begin with.