Can someone explain how refinancing makes money?
How do you determine when it's a good time to refianance
Cash Out Refinance turns equity into cash. I believe this is what you are referring to. It works like this:
Current Property Value - $150,000
Outstanding Mortgage - $75,000
*you have good equity in the property, so you consider refinancing to have more cash on hand.
Cash Out Refinance w/ Lender is 80% LTV = $120,000
$120,000 - $75,000 = $45,000 (Cash in Hand)
Any questions let me know!
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