Bought a house with equity, How can I use it?

[Antonio C.]

Hi friends,

Sorry for this question, I am a total newcomer...

I just bought a turnkey property and it has been appraised by the bank for $10k more than the price in my contract. Is there any way to use that equity that I just got with my house?.

Thank you very much in advance, This forum is really fantastic!

[Jon Holdman]

What's it worth? $10K in "equity" on a $100K house means you have enough to cover the costs if you sell. You have no equity. On a $200K house, you're in the hole. On a $50K house, you have enough to cover the costs and put a little cash in your pocket, but not enough to take anything out. The best you're going to do on a cash out refi is 80%. And you'll likely need to hold it for a year. There will be costs on the refi, I'd guess around $4000 for a $100K loan.