Does a refi make sense?

[Anthony O.]

Hey Guys and Gals,

Looking to make sense of a deal that I’ve closed on and just completed a rehab. 

Purchase price of 115k with 10% down @ 4.75% with a P&I of $654/mo

Loan balance of 103,500

Rehab cost of 10k

ARV of what I am guessing to be about 150k

Assuming an ARV of 150k with 80/20 financing at 5.5%

After closing costs etc it doesn’t seem to make sense. Any thoughts or input?

[Harjeet Bhatti]

@Anthony O. Try to get HELOC on this home if you are more interested to pull out the equity . You have lower interest rate. Do not touch 1st mortgage.