We recently contacted the bank our mortgage is through, seeking a cash out refi. They did a rough value of the home at @ $200k and the payoff is currently $130k. After all was done they only projected we walk away with $5k...
Does this seem right? We're looking for our first rental unit and this is my first time inquiring about a cash out refi so I'm very inexperienced. But does this seem right? Should I consider a HELOC or just scratch the idea of utilizing our equity all together at this point?
Not enough info. What were the terms? Interest rate? Points? What percentage of the Assessed value are they funding? What costs are you rolling into the funding so you're not out of pocket?
what's the LTV?
what's the cost of the LOC?
200k @ 75% = 150k - 130k = 20K.
as Joe said, need more info
That's what the lender sent me
@Mitch Howard Well based on payoff you owe 140k, not 130k so yes 5.8k seems about right.
It sounds about right the real issue here is they are only giving you 70% LTV on a cash out .. you can probably get 75% LTV but the cash out amount would be around 10-15k
If the property is in MI it maybe tougher to get 75% LTV but should still be possible