Cash out and lender advice

[Nicholas Baughman]

Hello, I've been shopping around trying to figure out the best rates to do a VA cash out of my primary. I owe 300k on a 30 year, 2.75% rate mortgage. I'm looking to pull out possibly 300k. My DTI is ~47%. My credit score is 730 and my wife's is 700. The best rate I've seen is 3.25% that includes a lender's credit of 1.5. This is from loan depot. Most other lenders are saying ~ 3.75-3.87%. Should I lock in the rate with Loan Depot? The other portion is that my wife isn't sold on the idea of pulling so much out. I told her that if we paid everything off we'd be saving $500/m, lower our DTI down to ~27%, and have ~ $165k left to do some things around the property, but most importantly, invest in another property. She's still nervous because she looks at it like we'd pay off most of our other debts in less than the 30 years on the new mortgage. I try telling her you can't look it that way. For one, all our other debit is now a right off (minus student loans of course). Secondly, even if we paid them off before then it would still take 10 more years to save up $200k. (she's worried if one of us lost our job how'd we pay for the new mortgage. She's worried we could put ourselves in a position where there's more potential to lose our house). So thirdly, I need to explain to her that it's a VA loan and its guaranteed. That means we can work with the VA and lenders a little easier to buy some time if needed. All-in-all, I feel like this is a great idea that will give us more leverage and that's key. What are your thought? Anyone have some great lender recommendations? Thanks

[Andrew Postell]

@Nicholas Baughman a 30 year fixed 3.25% cash out loan with a credit of 1.5%? That sounds unbelievably good. Have you checked out some reviews on Loan Depot before? If everyone was telling me one thing....except this one guy over here is telling me something very different....it might be worthwhile to seek out some reviews or something. Maybe that's the point of this post? If you have the use for the cash that's how most people get their start in investing. Refinancing is perfectly fine. And just in case, VA is not easier to work with if you get into trouble. However, this should not be an area of concern. Meaning, your finances need to be in good order before you start investing. If they are, then you should be ok. Keep in mind Warren Buffet's #1 to investing - NEVER LOSE MONEY. So if you never lose money on a deal, and your finances are in order, you will never lose your home. Keep that 6 months of reserve in the bank for emergencies and plan ahead. Reassure this point with yourself and your wife and I think you both will feel more comfortable.