Refinance Existing Property?

[James Gesswein]

Hello all.  I have my first question to ask here on Bigger Pockets.  I am sharing a response below from the company I have done my property financing though.  I asked them about refinancing our condo that we are renting out.  I am wondering if since I plan on using the additional cash for purchasing another property to rent does it make sense to refinance with a 30 year mortgage with the rate increasing almost a whole point? By the way, at this time, the $300,000 appraised value it a guess based on sales in the same neighborhood.

Thanks for sending this over. The maximum loan amount would be 75% of the appraised value, which at a $300,000 appraised value, puts you at a new loan amount of $225,000. After closing costs, that would put you with about $35,000 cash back, would that be enough? Also, the rate would be in the upper 4% range as well, which you are currently at 3.875% now. Would it make more sense to keep your current mortgage and try to get a home equity to get access to some funds?