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cash out question?

Is refinancing the only way i can pull cash out my property? by mkearl801 from Cottonwood, Arizona. Mar 1st 2019 Reply

Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,719 contributions

No, you can also do a stand along second mortgage or Home Equity Loan (HELOC).

Mar 1st 2019
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

There are several ways.. First, a cash out refinance is one way.. if your loan to value is at or below 60%, then the loan is priced pretty much the same as if you were not pulling cash out.. Higher Loan to Value's are available, but the higher the LTV, the bigger the pricing hit for doing a cash out. 2nd, as Joe said, A Home Equity Line of Credit (HELOC) is another way.. with a HELOC, you apply one time, and you have unlimited use of the funds during the initial drawing period, which is usually the first 10 years,,, After that, it converts to a fully amortized 20 year loan. The 3rd option is a stand alone 2nd mortgage. When comparing all 3, the rate on the cash out 1st position loan will have the lowest rate, but closing costs could be as much as $3000 to $5000.. ( here in AZ, it's usually closer to the lower end of the estimate).. The HELOC will have the lowest closing costs, typically under $1000 but it's a variable rate loan and when it converts to a fully amortized loan, the loan is still a variable rate loan. The stand alone 2nd mortgage is probably the worst thing you can do.. the rates will be higher and the costs could be as much as refinancing the 1st. Regardless, I can help with all 3 if you would like.. Feel free to reach out to me if you would like me to put some figures together for you.. No pressure,, just good, accurate info. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Mar 4th 2019
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