Refinance a paid off house?

[Arthur Nogueira]

Let’s say I bought a house cash. I rehabbed the house and I’m the property is now rented. Can I do a cash out refinance? If so, how does happen? Thank you 

[Sanat Bhandari]

@Arthur Nogueira What Bill said is correct, you can do a cash out refinance on a fully paid-off house. Go to your local bank/credit union and ask them for the same. Typically, they can give you the lowest rates 

However, another option that may be more beneficial is getting a LOC (line of credit) secured by the paid-off house. Unlike a cash-out refinance, you pay for the funds as you go and it functions as a credit card (rather than a mortgage), giving you more flexibility over the funds secured via your house and is potentially cheaper than a mortgage since it is not amortized. Additionally, this will be easier to get than a mortgage in this case since this LOC is in first position