Application process which first??

2 Replies

Hey guys, I’ve been approve for a owner occupant loan. I will doing 80-15-5 loan and I’m actually closing in on a cash out refinance for my current multi family home. Is it best to close out my refinance first then go forward with my second property??  I really want to use the equity from my current home.(cash out refinance) But I have an advisor that suggest to go forward with my 401k as a leverage instead. And I’ll just save the cash out money for emergency. What do you guys think?

I think you need a new adviser.  So you're going to pay interest on money that you're not re-employing, right?  And, unless you can reinvest it for 2.5% (rate of inflation) PLUS the mortgage interest rate, you'll be losing money.  Your 401K is invested - and hopefully earning a good return - so why remove an investable asset to hold leveraged funds for some unforeseen whatever.

Do the math...the answer is pretty clear.  

your right, it all depends on how many months I will repay as I am currently employed. But my thing is .. either way. My tenants will pay everything out. But my paycheck will be less unless I just do a withdraw. But your right! Thanks again

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