Refinancing Home Questions

[Logan Chen]

Hello everyone,

I had a question regarding refinancing homes. I generally understand how a cash out refi works (using my numbers of 240k purchase with FHA 3.5% vs 280k ARV), I can take up to normally 80% LTV out of the house.

However, I was wondering how the no cash out or limited cash out refi would work. Would the 40k increase in equity be added my original loan payments? Or would it change to a mortgage of 280k with my initial investment plus the 40k?

Tl;dr Sorry if this is confusing, how does a non cash out refi work for investments