im sooooo confused.. want help please

[Banijyoti Hira]

im stuck at the stage of refinance!!! BRR done but im stuck in the next R i mean refinance 

270K refinance at 6% for 30yrs

total amount to be paid by 30yrs to the bank is 582k[270k +312k interest]

my bank will not allow me to pay it all at once [have to pay it over 30yrs acc to contract

if i sell the property now, it will be sold fr 350k 

its a complete loss

so it means im stuck till my morgage reduces over time and value of property increases, if i want to sell it and make some profit right?

[Andrew Postell]

@Banijyoti Hira yeah, I may not be following your post correctly either...so here's what I think you are saying:

It sounds like you are saying that if you pay your 30 year mortgage over time the total payments will be $582k...that's pretty normal.  Usually, you pay twice as much as you purchase a property for if you stay in the mortgage for 30 years. Most of us don't stay in it for 30 years...but if we did, our total payments are about twice as much.

It also sounds like you are saying that your lender won't allow you to pay your loan off early...and that will NOT be the case. Having a 30 year, prepayment penalty is not likely...so it is likely you can pay your loan off early if you wish.  We call this refinancing.

However, you can't just refinance at a whim...there are rules to refinancing.  It sounds like you have improved rehab'd your property and increased the value to $350k.  I can't tell if this is your primary home or an investment property...nor can I tell if it's a single family home or multi (and all of those things affect the "rules" to refinancing)...so let's assume this is a single family, investment property.  

On most, SFH Investment Properties your cash out limit is 75% of the property value. So, if your value is $350k...then 75% = $262,500. So, you owe MORE than you can even refinance.  It would be impossible to refinance since you already owe more than the maximum amount that you could take out anyway.  The above example showed 80%...so, if you could get 80%, it's STILL impossible.

The important thing here is to understand the refinance rules BEFORE you get started.  Now, I didn't know what the rules were when I got started either...and I'm a millionaire.  So, yes, you will be ok...but as soon as you learn the rules (or have people in your network that you can rely on to tell you the rules) then you will be a better real estate investor. 

I hope this makes sense how I am describing these things.