Looking to get into full on real estate investing in a few years after lots of education. With that being said I have learn a lot just by owning my own home but have so much more to learn.
My question deals with refinancing, if it would be smart to do now and what benefits I could get from it. A little back info on my property Im wanting to look into refinancing. Currently owe $14k less than the Zillow "estimate". We have been living in the house for almost 2 years now and have never had a late payment, we actually pay a very small additional principal payment each month.
We ended up getting a no money down VA loan for the full price of the home and rolled our closing costs into the mortgage. Locked in a 3.875% rate. With all of that said, would I benefit from looking into a refinance and how. I'm not sure if there is any further information you may need, so if I missed something please let me know.
First find out what your house is actually worth. Best way would be have a realtor run comps on the place. Zillow estimate is notoriously inaccurate.
Second, compare that value to the remaining balance on your mortgage. That is your equity. Most banks won’t do a cash out refinance until equity is above a % (20-25 is what I have seen, but each lender is different).
You may have other options but hard to say so talking to a bank might be the best way to explore those paths.
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