Cash out refinance for new investment

[Nina Shell]

I am looking to do my first cash out refinance but I have a couple of questions. I don’t know the worth of the house. I had an appraisal done about five years ago but we have another bedroom to count now in terms of comps. My question is, can I get my own appraisal before refinancing and would it be valid if I did? I’d like to know my loan to value ideally before getting into the process. Also, how is the lending scene looking for cash out refinances on a rental?

[Evan Polaski]

@Nina Shell I would talk to an agent to pull comps for you.  You could hire an appraiser, but the bank likely won't use your appraiser.  If you plan on using a conventional (fannie or freddie) loan, the bank cannot pick the appraiser, it will be assigned through some system.  But a broker price opinion should give you a ball park.  That being said, be sure you are looking at their comp set, because I know some agents that get really aggressive on pricing, and for a cash out refi, your appraisal will likely lean conservative.

As far as it being a rental, do you own in your personal name or LLC? If LLC, you will be on the commercial side of the bank and generally terms are not as good: shorter am, shorter terms, higher interest. If personal, you just need to find a lender that will do conventional, non-owner occupied mortgages, but you can find 30 yr fixed, lower rate mortgages.