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Updated over 5 years ago on . Most recent reply
What am I doing wrong? Cash out refi
Hi BP
Ive never done a cash out refi before, so not sure exactly the process or how to make it work. I get the concepts of it. It seems easy enough. I just got done talking to my bank and a bit surprised at what they came back at me with. Are these numbers pretty normal? Going into this, I wanted to pull out about 40k
Current loan
-About 55k left on 80k loan. House is currently valued around 125k. About 20 years left on a fixed 30 yeaer at 5%
-I could get 38k out. New loan would be at 5.6% increasing payments by about $175 a month. I guess I figured they would be a bit better.
Am I wrong for hoping for something better?
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- Loan Officer / Processor / Life & Health Agent
- Rancho Cucamonga, CA
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Originally posted by @Joe M.:
Originally posted by @Shaun Weekes:
Originally posted by @Joe M.:
Hi BP
Ive never done a cash out refi before, so not sure exactly the process or how to make it work. I get the concepts of it. It seems easy enough. I just got done talking to my bank and a bit surprised at what they came back at me with. Are these numbers pretty normal? Going into this, I wanted to pull out about 40k
Current loan
-About 55k left on 80k loan. House is currently valued around 125k. About 20 years left on a fixed 30 yeaer at 5%
-I could get 38k out. New loan would be at 5.6% increasing payments by about $175 a month. I guess I figured they would be a bit better.
Am I wrong for hoping for something better?
After fees etc you should be able to get around the 40K mark but unless you have some credit issues the rate being offered is crazy. Conventional rates are high 3's to low 4's currently and FHA and VA rates are low 3's to mid 3's currently.
I hope this helps.
Hey thanks for the post
I actually have about 780 credit. I was told because it was on a rental.
...so look elsewhere? lol
Oh, if this is an investment home the rates for conventional will be more like high 4's to low 5's and FHA and VA can only be used in certain situations. 5.6% is still high so try and shoot for high 4's and go from there.