Cash out refi question
Hi everyone on BP,
This is an amazing community and there is a wealth of knowledge here. Thanks everyone for being a part of it. I especially love the podcasts.
I am doing a cash out refi on my owner occupied duplex for the purpose of getting a low rate before they go up and to use the extra cash to buy another property as an investment (I don't have a specific property in mind yet). Fortunately my house has appreciated and I can take out a substantial amount while still staying below 70% LTV to avoid PMI and use it as a down payment on another property. Also my mortgage broker said if the new loan is above $535k then there may be a higher rate. I am still awaiting the exact rates and crunch the numbers but strategically should I try to take out as much cash as I can or leave some in the property? I definitely want to keep the positive cash flow which i can do if if make it a 30 year term (right now I have 17 years left on a 20).
Thanks in advance for your thoughts and comments.
David