​is there a way or me to get equity out on the house im looking t

2 Replies

will be puting 20% down on a 200k house but it is appraised at 270k. How can I get equity out of the extra 70k? second mortgage? is it easy to do?

Thank you Very Much,

Reda

Second mortgages are not easy these days. You could find a private lender to put a 2nd on the property, but that will likely be at a substantially higher rate. I would look for a bank that's willing to refinance a property at appraised value (versus what you have into it) with a short seasoning period (the time a bank requires you to own a property before they will refinance it at appraised value). We've come across one or two banks that don't require any seasoning at all. 

One question though, does your current loan have any prepayment penalty or yield maintenance? That would make it more expensive to do what I just mentioned. 

Originally posted by @Reda Akbil :

will be puting 20% down on a 200k house but it is appraised at 270k. How can I get equity out of the extra 70k? second mortgage? is it easy to do?

Thank you Very Much,

Reda

 Hi Reda, I am a lender in Philadelphia...my questions to you is, why are you putting 20% down? Why not leverage the banks money and keep money in your pocket?

The issue here is any lender is going to use the lower of the purchase price vs. the appraised value. You should wait 6 months and pull money out of property...