When refinancing a property ...

[John Moore]

Hey guys and gals,

When you purchase a property with private money or hard money and go to a bank to refinance.. do you still owe the 20% deposit like you would if you had originally went with a bank lender to start? Or does the loan just carry over at a Lower interest rate? Any and all info is much appreciated! 😊

[Christopher Lombardi]

@John Moore I'm not sure what you mean by "owe" but when you refinance the bank will usually let you pull out 75-80% of the appraised value.  So if you have a 1mm property and your hard money loan is for 600k, they will typically pay off the 600k hard money loan and let you walk with 150k.  Let me know if that answers your question.