Ease of Taking a Cash-Out Refinance

[Joseph Jackson]

Hello all,

I was wondering if anyone could give any insight into their experience with taking out a cash-out refinance, either on their own home that they live in, or an investment property they own (would love to hear from both perspectives).  Looking to judge merits of going this route, how easy it is to attain (i.e. what rates to expect from bank, what Loan-to-Value likely to get from a bank, how this impacts Private Mortgage Insurance, how streamlined the process is, etc), so as to help determine whether this makes sense versus a Home Equity Line of Credit, or just selling the property and reinvesting the cash, avoiding the tax of doing the sale by assuming the property I'm selling is either my primary residence or an investment 1031 exchange (in my case, both apply, with different properties)

Thank you!

[Thomas Dionne]

Heloc. I got a 90% loan based on value for a 99$ fee from TDBANK. They didnt even 4506-t me. This was only 16 months ago. 3.75% rate.

They gave me 90k cash line... for a 99 dollar fee. Compare that to a cash out refi HUD with all the fees and what not. Other things I like other than not coughing up so many fees:

1. if i dont need the money, i pay no interest. I only use it when I need it

2. its "interest only" if you dont like that, just add some money to your payment on top of the interest, thats all an installment loan is.. plus fees.

3. so much less intrusive than a regular refi, they just asked for "pay stubs" no 4506-t, maybe i got lucky i dont know thats how it went down. 

Now I buy my personal residence with cash then turn around and get money back with a heloc and wait for a good deal to come along or sit on my hands. No need to rush because the juice is already running via an installment loan.