I've looked around a bit for this, but nothing quite answers my exact question. I'd like to do a cash out refinance on my primary residence for 2 reasons: 1) to free up equity to buy another property and 2) to remove PMI on my loan
I have $535,000 left on my balance and I'm hoping my house will appraise to at least $675,000 which would put me just below the required 80% LTV mark, so I can refinance without cashing out and also get rid of the PMI.
1) Would I be able to cash out $100k of the equity? Or can I only cash out whatever the amount is that would take me to 85% LTV; I have an FHA loan, so 85% is the limit, but I'm not sure if that means you have to be below that limit before you can cash out, or not.
2) If I can cash out $100k which would put me above 80% LTV, would I have to keep PMI?
3) Do HELOC loans have similar restraints on LTV?
You might be better of refinancing to remove PMI then get a HELOC. Some banks offer 85-90% LTV it wont be 100k but good enough line.
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