Posted by ybnrml40@netscape.net on November 13, 2000 at 11:22:35:
If theres enough equity in the house you can cash out refi at 80% of appraissed value. You will have to come up somehow with closing costs, but you will recoup after closing, and hopefully lots of $ extra. Borrow the closing from someone or somewhere, then pay right back, keeping the difference. Remember that you will have higher pymnt, so cash flow will be lower. Interest may be higher than you have now.Closing fees will eat up some of your profit, so you may not end up with very much when the dust settles.If you can still cover your new payment and make some extra every month,ok. Also, you have to shop around to find an appraiser who will “bump” up the appr. a little to get you where you need to be. Ask questions, they’re free! The lender will tell you what the appr. needs to be to get your desired $ amount out.Just be careful and think it through.I refied once,pulled $20,000 out, but now after mrtg,tx,ins. pymnts, I only clear $50 a month on the property, where I was clearing $300 mnth. Everything will increase (tx,ins,mrtg pymnt).Of course I did buy more properties with windfall, and they are doing well.Be smart with it.