Alright, don't jump all over me for the question, but I really don't know the answer
Let's say I buy a home for $100,000 and put 20% down with a 7.25% mortgage. I now have $80,000 worth of debt with roughly $450/month in principal and interests payments
15 years goes by and I have significantly paid down my debt (let's just use $40,000 for this example). House has now appreciated to $150k in value.
If rates are the exact same at 7.25%, can I refinance my $40,000 of debt and simply reduce my principal and interest to $250-300/month in an effort to increase cashflow on my rental?
My thoughts are
1) Yes, duh
2) Banks won't refi on a balance that small
3) You would have to do a cashout refinance, thereby increase your mortgage balance
4) Can't refinance at the same rate for some reason
Thanks guys!
