Cash Out Refinance?????

[Brandon Dallas]

Hey guys,

long time lurker and need some assistance. I have an investment property that I currently own in pinellas county. The property doesn't currently have a mortgage and a tenant has been in place for a year. My wife and I would like to do a cash-out refinance on the property, so we can use the money as a down payment for a primary home residence up north. This is my first time applying for a mortgage and general, and it seems very overwhelming especially at a time like this when everyone is attempting to refinance. Credit score is 740+. Can anyone give me some and let me know what I can expect during the process? What banks/lenders do you recommend we talk to that will be welcoming? Credit unions? Any advice is appreciated, thank you.

[Al Fernandez]

Originally posted by @Brandon Dallas:

Hey guys,

long time lurker and need some assistance. I have an investment property that I currently own in pinellas county. The property doesn't currently have a mortgage and a tenant has been in place for a year. My wife and I would like to do a cash-out refinance on the property, so we can use the money as a down payment for a primary home residence up north. This is my first time applying for a mortgage and general, and it seems very overwhelming especially at a time like this when everyone is attempting to refinance. Credit score is 740+. Can anyone give me some and let me know what I can expect during the process? What banks/lenders do you recommend we talk to that will be welcoming? Credit unions? Any advice is appreciated, thank you.

I find that credit unions are the best places to start if your finances are in good order. At-least with my credit union they have always have been able to beat the independent mortgage brokers and all the online companies in rates and closing costs. More importantly they are very upfront right from the get go. The only issue I have seen with the credit unions is despite having great credit history ,scores, and finances they typically have more limitations with their rules.

For example I have a property that I purchased for my parents and therefore produces no income. My credit union wont allow me to refi it as a secondary home because its within 50 miles of my primary and occupied, but they also wont let me refi as an investment property because its not income producing. In the end it didn't really matter because they are so busy they stopped taking new refi until an unset date.

Also right now due to demand and uncertainty in the market it appears that the rates are artificially higher than they should be with the lenders that are still doing Refi , despite how well your finances are.