How to answer the banker asking about RE-FI
This is my first re-fi and it is on a duplex. Bought 1 year ago with conventional financing and utilized a LOC to rehab. Bank told me that a re-fi will be based on the appraised value, not the loan or purchase price (when I asked about this a year ago). So the one year mark is up and I'm talking with the same banker and now she said something along the lines of they will re-fi based on the value of the LOC and conventional loan. So I asked about the re-fi based on the appraised value and her response...
"What would the remaining fund be used for"
I plan to use for continued investment into the business to buy more properties, but I'm not sure that is the answer she or the underwriter is looking for.
Any help is greatly appreciated!