Cash Out Refi Question

[Joshua Levine]

Hi guys, I'm a newb.  Trying to understand the numbers on a cash out refinance while also explaining it to my wife so she can understand it as well.

So let's say I find a home I want to buy.  Home stats

Purchase Price - $60,000

Down Payment - $12,000 (20%)

Initial Loan Amount - $48,000

Closing Costs- $5000

Repairs - $35,000 (using cash for repairs)

Total all In costs = $52,000

ARV- $150000

I then want to go to the bank and do a cash out refinance (75% LTV which by my numbers would be $112,500 and my equity in the home would be $37,500).

$37,500 - $7,500 = $30,000

Does this mean the bank would give me a check for $30,000?  Am I missing something here or do I have it about right? Thank you.

[Harjeet Bhatti]

@Joshua Levine  Not in all scenario its wisely to buy cash and spend two time closing cost.  You have to look in to your numbers if its makes sense.  If county is showing more assessed value compare to your current appraisal value you can always challenge the county for lower property taxes.