To refinance or not to refinance
Big dilemma. Since I’m refinancing I have a couple of options.
1.refinance for 60/40 LTV
OR
2. Refinance for 80/20 LTV
I don’t have a crystal ball. But if the market dips or whatever happens to these buyers that have adjustable commercial mortgages coming due and might be a possibility to scoop up a couple of properties.
Or just sit on the sidelines with cash on hand till a good deal comes along.
I’m debating if the higher mortgage payment is worth it since a recession supposedly is near.
Or just do the 60/40 LTV to have a smaller payment.
So cash in hand and a higher mortgage payment
Or
Less money and a smaller mortgage payment.
What would you do?
Thanks
It sounds like you're asking if you should cash out 80% of your equity so that you have money in the bank in the event a recession comes and you have opportunities to buy more real estate deals.
-Is this your primary residence or an investment property?
-If an investment property, how much does it cash flow and what will the payment be on an 80% LTV loan?
-What is your debt to income ratio?
-Will you be able to comfortably support a payment at 80% LTV for the foreseeable future?
If you are an experienced investor and you have confidence that you will be able to spot an opportunity when it comes, then cashing out isn't a bad plan. Don't focus too much on if a recession is coming or not. Just focus on finding a deal.
if you believe you can safely invest at a higher rate then your borrowing at take the cash out and reinvest it.
Quote from @Scott E.:
It sounds like you're asking if you should cash out 80% of your equity so that you have money in the bank in the event a recession comes and you have opportunities to buy more real estate deals.
-Is this your primary residence or an investment property?
-If an investment property, how much does it cash flow and what will the payment be on an 80% LTV loan?
-What is your debt to income ratio?
-Will you be able to comfortably support a payment at 80% LTV for the foreseeable future?
If you are an experienced investor and you have confidence that you will be able to spot an opportunity when it comes, then cashing out isn't a bad plan. Don't focus too much on if a recession is coming or not. Just focus on finding a deal.
This is a commercial property that's when i refinance will slight be lower from the 50% rule