Updated over 9 years ago on . Most recent reply
Can I refi 1 home to pay off another?
Ok I have a few questions..
I currently own 2 homes and they both have a mortgage. 1 mortgage is at $39k and the other home is at $51k. Am I able to refi the home loan at $51k to $90k to pay off the other home? If so what are some things i would need to
Do and any guide lines?
I would say the house at $51k is worth around $100k
Most Popular Reply
It is possible to do a cash out refi on a home and use the excess proceeds for pretty much whatever you want, including things like purchasing a new home or paying off debt (like another mortgage).
But what is it you are trying to accomplish? Is the rate on one of the mortgages really high?
One issue I see right away without knowing more information is that you'd have to pay closing costs on a new mortgage to end up with essentially the same amount of debt. Also, even if you could find a lender to do a cash out refi for 90% LTV (which it sounds like you'll need if you need a $90k mortgage on a $100k house), you're likely going to end up having to pay PMI. And that's if you can even find a lender willing to do it.