Refinance a home bought with cash?

4 Replies

So this question may be showing my ignorance but whatever. So if I have a paid for house lets say 100k. If I want the capital out of that purchase can I just go get a coventional 30yr loan on it? And pull what cash I need out?

Thanks bp.

Yes! What you'd be getting is technically a "re-finance" since you originally "financed" the property yourself with cash. So that's what you'd be asking the bank for. (I had this detail explained to me recently here in the context of a question I posted).

If it is your own home you would also have the option of a home equity loan or a heloc. Which of the three would be a better choice would mostly depend on how much money you need, and for how long.

short answer is yes. There are guidelines you have to stay within.

Did you buy it in personal name ?

This is more a question for the future. Its my understanding full cash offers get accepted more often. So I can swing the lack of capital for a bit but after a yr or so would want to pull it out for the next deal. At least that's my plan.

Also it would most likely be a non owner occupied investment property.

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