All Forum Posts by: Jamie Jones

Yes, as long as you are bankable when you want to refinance, you should be able to find a lender that will do the refinance. As others have stated, lenders legally have to prove that there is some benefit to you, which is accomplished by showing your payment being almost cut in half. Some lenders do have a minimum loan amount, so you may have to talk to a couple to find the right fit. 

There are closing costs to consider, but on a loan amount that low they really shouldn't be too bad, and can all be rolled into the loan amount so you don't pay out of pocket. Rolling them into your loan amount will likely only increase your monthly payment by a very small amount, when spread over 30 years. 

15 years is a long time, and A LOT can change in the mortgage/lending industry, especially if we see any kind of housing downturn between now and then. Also, my gut tells me technology will make most appraisals either much cheaper or non-existent in the next 10-15 years. 

@Nick Camizzi the others in this forum have nailed it. With the higher rate, comes more flexibility. Keep in mind that HELOCs are adjustable rates, and are determined by the US prime rate (currently 8.5% plus a margin - which is determined by your FICO, Loan to Value, DTI, and the banks appetite for that product). The margin is fixed for the life of the HELOC but the prime rate is adjustable (and has moved up 5.5% since the Fed started increasing). The good news is the Fed is likely done or close to done raising rates, at least for now, and many think they will start cutting rates by end of 2024 - it's all dependent on economic data.

It really comes down to what you plan to do with the cash out funds. If you plan on using those funds to pay cash or put a large down payment on a long term buy and hold property, the cash out refi likely makes more sense. If you plan to use the funds to fund renovation projects on more of a short-term basis, then the flexibility and interest only options with the HELOC probably make more sense.

@Nick Camizzi feel free to send me a DM if you’d like to chat further. Happy to help with the loan anyway I can.

@Nick Camizzi do you own the home free and clear right now? Or will some of the those loan proceeds need to go towards paying off an existing mortgage?

@Nick Camizzi got it. Sounds like he was just giving you rough estimates (which were way too high) but actual numbers should come in about more than 25% cheaper.

How does an approx $1,400/mo payment fit into your goals? How much cash are you looking to pull out?

@Nick Camizzi so with those figures, your total payment should be a little under $1,400.

$973 principal & interest

$150 home insurance

$250 property taxes

$1,373 total monthly payment.

Have you received any kind of documentation from the lender that breaks down your payment estimate?

Hi @Nick Camizzi, your monthly payment seems higher than it should. A $150k loan amount with a rate of 6.75% for 30 years equates to a principal and interest payment of just $973. To my knowledge, property taxes in the Raleigh area are fairly low. Do you know how much your property taxes and home insurance premiums are? 

as @Jay Hurst mentioned, if your income falls below a certain level, you can possibly get a multi-family for just 5% down. If your income is above that limit though, you are looking at minimum of 15% down on conv. loan for 2-4 units.

In regards to FHA cash out, the max LTV is 80%.

@Dan N. oh, we would be even cheaper for loans in that price range (7% with no points) on a 30 year fixed. DM me if you'd like and I'll see what we can do in regards to the unique circumstances. 

 Hi Dan, if you are putting down 25-30% with a 763 credit score, you should likely be able to find conventional pricing without points (or at least not much in points). What purchase price are you looking at and what market are you in? My pricing is in the high 7's with no points with 30% down.