Refi Now to Get Half My Cash Out?

[Louis Zameryka]

Looking for advice. I’m new at this.

I have owned a condo in Orlando for the past year. It is a cash flowing STR. The recent sales of the same or similar condos in the development are now selling for much more than I bought mine for.

However the recent changes to second home mortgages probably mean I will need to have a 75% LTV instead of my current 80% ltv.

Based on comps, if I refi to get cash out I will get approximately 50% or my cash invested up front back. (down payment and closing costs)

Should I refi now to get that cash back?

To add further detail:

I don’t explicitly need the cash.

My mortgage rate is likely to be 125-150bps higher if I refi.

Condo will still cash flow at the new mortgage payment even with the interest increase.

Thanks for your advice.

[Tyler Gibson]

Quote from @Louis Zameryka:

Looking for advice. I’m new at this.

I have owned a condo in Orlando for the past year. It is a cash flowing STR. The recent sales of the same or similar condos in the development are now selling for much more than I bought mine for.

However the recent changes to second home mortgages probably mean I will need to have a 75% LTV instead of my current 80% ltv.

Based on comps, if I refi to get cash out I will get approximately 50% or my cash invested up front back. (down payment and closing costs)

Should I refi now to get that cash back?

To add further detail:

I don’t explicitly need the cash.

My mortgage rate is likely to be 125-150bps higher if I refi.

Condo will still cash flow at the new mortgage payment even with the interest increase.

Thanks for your advice.

 I would probably only do it if I had a plan of the money otherwise you are paying a higher rate to have the cash sit and do nothing.