Private Lending & Conventional Mortgage Advice

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Karli F.
  • Rental Property Investor
  • Saint Paul, MN
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Refinancing to remove a co-buyer; how to keep loan ratio down?

Karli F.
  • Rental Property Investor
  • Saint Paul, MN
Posted Aug 25 2019, 17:07

I need to refinance a house to remove a co buyer but I don't want to have a new 100% loan for the balance owed on my credit. Does it make sense to refinance for 20K more than amount owed, then applying those funds to the new mortgage?  For example, amount owed is 195K; new loan would be 215K with 20K out, but the 20K would be paid back to the loan.

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