Hello,
I've been shopping around trying to figure out the best rates to do a VA cash out of my primary. I owe 300k on a 30 year, 2.75% rate mortgage. I'm looking to pull out possibly 300k. My DTI is ~47%. My credit score is 730 and my wife's is 700. The best rate I've seen is 3.25% that includes a lender's credit of 1.5. This is from loan depot. Most other lenders are saying ~ 3.75-3.87%. Should I lock in the rate with Loan Depot?
The other portion is that my wife isn't sold on the idea of pulling so much out. I told her that if we paid everything off we'd be saving $500/m, lower our DTI down to ~27%, and have ~ $165k left to do some things around the property, but most importantly, invest in another property. She's still nervous because she looks at it like we'd pay off most of our other debts in less than the 30 years on the new mortgage. I try telling her you can't look it that way. For one, all our other debit is now a right off (minus student loans of course). Secondly, even if we paid them off before then it would still take 10 more years to save up $200k.
(she's worried if one of us lost our job how'd we pay for the new mortgage. She's worried we could put ourselves in a position where there's more potential to lose our house). So thirdly, I need to explain to her that it's a VA loan and its guaranteed. That means we can work with the VA and lenders a little easier to buy some time if needed.
All-in-all, I feel like this is a great idea that will give us more leverage and that's key. What are your thought? Anyone have some great lender recommendations?
Thanks
