What's the best strategy to take in this situation?

Question

Hi folks,

I'm looking for advice (over the internet, I know, but folks here are very knowledgable)

I'm looking at moving closer to work, but I'm thinking about keeping my home and buying another home. I own a 4/3 in a desirable part of a desirable town. I have about 30k for another down payment. I own about 30% in the home I live in now. Cash-out refinance would put 21k in my pocket, reset the term to 30 years, and with a 3.8% interest rate (a lower interest rate than I pay now, but wish it was lower). Selling the home would obviously net me more $ for the next home.

Does anyone have any good ideas for my situation? What would you do?

Abe Alam · Answer

Hey @Deborah Richards I did a cash out refi. Got a lower interest rate and successfully turned the house into a well cash flowing rental. (Huge demand for it too with work from home)

Next, I bought another primary. Looking for other deals now that I have more cash. My primary wasn’t super expensive, plus now I have rental cash flow.

Deborah Richards · Answer

this was my post today.  I am not sure it worth me refinancing ... what are your thoughts?

Hoping i can get some feedback on this.  I am a new investor and looking at to get my financing lined up for my first investment.  I dont have a property yet so just researching.  I currently have an FHA 30 year mortgate interest rate 4.25%.  I owe $110k on it and have a HUD partial lean for $41k.  My current mortgage including tax and ins $892.00.  I no longer have pmi.  My home is estimated at $300-$320k

I was thinking about refinancing with a cash out of $50k that i can use towards a down payment when find property   I am not sure if this makes sense because if i refinance the mortgage would be a 30 year and i would end up paying around $1150-$1200 mth based on interest of  2.99% APR 3.121.. New mortgage amount would be $210.000 and i will have $100.000 remaining equity... is it worth it for me to refinance when i am already 8 years into my current mortgage and am currently not required to pay anything on Hud Partial lien that also is not charging any interest?

thanks

Reid Chauvin · Answer

Happy to try and help answer any specific questions re: a cash-out refi, Deborah.

Deborah Richards · Answer

i am glad it worked out for you !

Abe Alam · Answer

Got a 3.6% rate after the refi.

Deborah Richards · Answer

Hi.. interested to know what strategy you took as currently thinking of doing a cashout refi

What's the best strategy to take in this situation?

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