Posted by Brian (WA) on December 18, 2004 at 21:10:34:
My suggestion would be to either do an option arm with payments starting at 1% for primary residence and 2% for investment properties or some other arm since you are only planning a 3-5 year time period.
I have a small Condo which I have owned for many years
and the mtg is now about 10K valued at 200K.
I’m looking to pull my cash out.
I have a lot of equity in the property.
I have depreciated the property for 17 years.
If I sell, I would be looking at a big gain and recapture.
( but I can offset fully by my stock losses ).
If I refinance say to 80%, I will have a negative cash flow.
and still have to manager the property etc.
Also, I’m self employed and only show a very low salary.
So, I’m not sure if I can easily refinance.
The money would probably go to a Money Market Fund.
I want to live off this cash for the next 3-5 years. (no, i’m not retiring ).
So, if I can’t sell right now, what is the best deal I can get to refinance in Southern California ?
I agree with Brian, that way there is less of a chance you will have negative cash flow. With the option ARM, you can “pick your payments” (meaning you choose what you want to pay out of 5 diff. options). THere is also a stated option on this, so your income is not verified. Email me if you would like some more details. Thanks!