We have been in our primary residence for 8 years and, after a call with the bank, I can access around $125,000 of equity. Assuming 25% down, I have around $500,000 of purchase power. This would be accessing around 50% of our equity.
If we wanted to we could likely access around $150,000 more for total buying power of around $1.1M, but I feel that is too large of a mortgage to carry right now on our personal home.
Accessing the $125K would require refinancing our primary residence. Our mortgage matures next October, at which point the rate would of course reset. Current rate is 3.44% fixed.
In my day job, I could likely save $125,000 cash in three to four years, which would not require a refinance or swallowing the cost of "reborrowing" against our primary residence.
What are the benefits and pitfalls of a refi, to put a downpayment on an income property?
I've got quite a few solid people I can ask for advice, but this is the internet, and if you don't ask Reddit, you're missing out on tons of hilarity.
Any advice greatly appreciated. Virtual beers for you.
