Help me understand refinancing???.....

[Matt H]

Hello, I have a quick question. I have a 15 unit building. I'm thinking of refinancing in order to unlock some cash. I've never done it before so I'm trying to understand how much cash I'd get out after refinancing.

The building has a first mortgage of about $615k

It should now appraise at about $1.2m

So does that mean something like the lender will borrow me say 75% on that new appraised value of $1.2m, say giving me 900k in which I'd payout the first mortgage, leaving me with the remaining balance of $285k which I'd be able to pocket?

I think this is how it works when using refinancing to unlock cash from your property but I'm not 100% sure?