Updated about 7 years ago on . Most recent reply
Cash out Refinancing
Hello All,
My wife and I's first home has appreciated significantly since purchasing 4 years ago and we would like to use our equity to accomplish 3 things.
1) Remove PMI - This is an FHA loan with PMI for lifetime of loan. We would like a conventional loan where the PMI at least expires at a certain equity %.
2) Remodel Home - We estimate our home could use around $30,000 in improvements to realize full value. (purchased as foreclosure)
3) Take out cash to purchase first investment property. We would like to start our first BRRR.
Our current mortgage balance is $112,000 and the current value is around $275,000 (conservative). After repairs I estimate the value to be at least 350k.
Any thoughts on the best way to accomplish these goals? Helock vs Cash-out? Will I have to refinance twice?
First priority is to purchase first investment property. Our home is in perfectly livable condition.
Thank you and I apologize if this not enough info - I'm a novice!