A Refinancing Question

[Peyton LaBarbera]

Lets say I bought a house for 200k with 20% down so 40K into the property and a year later I decided to refinance to get better rates for more cash flow but the property went up to 250k would I now have to put up an additional 10k to reach that 20% equity or do I now have 50k in extra equity?

[Doug Smith]

The lender will have the property appraised. Let's assume it comes in at the $250K you think it will. The lender will take the $250K X 80% = $200,000. They will lend up to that amount to refinance your first mortgage without PMI...provided you qualify. Unless you owe more than $200K, you shouldn't have to put down more than your closing costs. Good luck.