Posted by Ben Carmona on August 30, 2006 at 19:01:13:
“Now” meaning immediately after the purchase as opposed to waiting for 6 months.
You may want to look at the option of refinancing the enitre loan at 90% paying off the original 1st mortgage too. If you’re planning on using those funds shortly it would be better to have the majority of financing fixed under a 30yr rate.
By doing only a heloc on your existing 2nd with additional cash out this puts most of the finacing under a higher variable rate.
Mortgage financing scenario question - Posted by Charles
Posted by Charles on August 30, 2006 at 11:06:23:
I am getting a mortgage on a home and want to pull out equity immediatly.
Closing in two weeks with standard 80/20 financing. The home just appraised for $100K more than the purchase price. I have an instant $100K in equity. In 6 months I will refiniance into a lower rate with a cash out option. Right now i want to be able to pull out $50K immediatly after closing.
my broker suggested that I can get a private loan right after closing for $50K and when I refi in 6 months for 90%CTLV … will be able to pull $70K out paying back the $50K private loan and $20K in the bank.
Is there a better way to do this?
And/or if I do a private loan, can the house be used as collateral?
Can a Line of Credit be worked out with a local bank?
Re: Mortgage financing scenario question - Posted by Alain Castellanos
Posted by Alain Castellanos on September 20, 2006 at 10:35:10:
What you are planning on doing in 6 months, you can do now. There are a few lenders out there that have no seasoning on appraised value. The lender is financing your purchase won’t acknowledge the appraised value, but once you close you can turn around and refinance with someone else at the appraised value.
Not every lender will do it though. E-mail me if you want to know which lenders do (email@example.com)
Re: Mortgage financing scenario question - Posted by Ben Carmona
Posted by Ben Carmona on August 30, 2006 at 16:21:11:
Depending on your credit scores you should be able to do a cash out refinance up to 90% now. No reason to wait. You’d probably end up with a better rate on the first mortgage and could do a heloc for the 2nd as Patrick stated, or you could do a fixed 2nd mortgage. Either way, should be no reason to wait.
What’s your middle credit score?
Re: Mortgage financing scenario question - Posted by Patrick S. Lawson
Posted by Patrick S. Lawson on August 30, 2006 at 12:33:44:
Your best option if you qualify would be a no seasoning HELOC.
Re: Mortgage financing scenario question - Posted by Charles
Posted by Charles on August 30, 2006 at 18:08:55:
how would I do a “cash out refi up to 90%” now? This is a new purchase and it is in underwriting. 80/20 standard financing.
I am thinking I will refinance the 2nd into a HELOC right after the 80/20 closes in two weeks - will have to be a no seasoning HELOC as Patrick stated.
Two of us on the mortgage, mid scores 650 and 685