Refinancing owner occupied property

[Remone R.]

So I have a 4 unit property that me and my fiancée have lived in for a year. Our plan is to refinance our fha loan into a conventional w/cash out loan. We are trying to waiting until early spring for the comps in our area to rise in turn giving a better appraisal. Our sole purpose in taking equity out is to invest in a second property (brrrr method) so if we aren’t able to get a good appraisal and enough equity to cash out, would it be better to just do a refinance and take whatever equity we can get to put toward another property or do a refi then take out a HELOC at a possible 80% ltv? Kind of at a roadblock on what we should do. We want to get rid of the pmi insurance and take out some equity. Any suggestions are welcomed. Thanks

[Lynn McGeein]

Just want to caution that interest rates have risen since last year and are continuing to rise, so make sure you will actually see a benefit from any refinance, especially after analyzing costs involved. Make sure it's not more cost-effective to keep the low rate and just obtain a HELOC so you'll have the funds when needed, or maybe research all options and be ready to jump if mortgage rates ease back a bit in the future. My daughter bought last January and was also looking at this scenario and, for her, the higher rates have already taken away most of the benefit of refinancing right now. They are still finishing renovations so will make a decision once complete, but it has been frustrating for her seeing it rise and missing her window of opportunity.