All Forum Posts by: Chris Sullivan

Dan that is correct, I would be taking a loan out of my 401k to put cash into the refinance. Any interest on the loan (~1.8%) is paid back into the 401k account with a $50 application fee. I think you are right not worth it a this time. Either need to get the appraisal adjusted upward or wait for some more favorable local comps and/or force appreciation.

Thanks for the input Tyler, that would be a good way to present to the appraiser who is not from the area. Just looking at the Zillow Home Value Index (ZHVI) for the two towns there is a 15% difference between the towns. I know all Zillow data should be taken with a grain of salt, but this is a long term trend ~10yrs showing the difference.

I'll try to put some actual sales together to bring back to the appraiser. On the appraisal sales comp approach form there is no adjustment for location, can they just pencil this in?

When I was looking for my first house hack, I would always run the numbers as if I would not be living there. Cash on Cash Return is a good measure for house hacking, however it is still good to look at the Cap Rate for a comparison to what other investors would pay. Eventually if you own the property free and clear, you can use this to compare against other investments like the stock market.

I am in the process of refinancing (conventional) an owner occupied duplex. Purchased with an FHA loan 3.5% down in 2018. Due to lack of any comps in my town, appraiser used sales from another less desirable town and appraised ~$30-40k lower than expected.

To complete the refi now, I would have to cash-in $27k. Interest would go from 4.25% down to 3%, and get rid of MIP for the life of loan. Currently the property would break even if I move out, but this would reduce the mortgage ~$500/month making it much more desirable to own. Should I tap into retirement savings to fund this?