Should You Consider a Cash Out Refinance?

What is a cash out refinance? How does a cash out refinance work? Are you considering a cash out refi to pay off debts or do home improvements? What are the pros and cons of a cash out refinance? In this video, we discuss the process of doing a cash out refinance, how it works and discuss some scenarios to give you a better idea of the mortgage process to see if it's a good fit for you.

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[nellosnook]

HELOCs and cash-out refis should ONLY be used as leverage for investing in rental real estate. If you have sufficient equity in your primary residence and you’ve done your due diligence and the numbers work out on a great deal, a HELOC is preferable as you can pay it off when your ARV (After Rehab Value) on the new acquisition is enough to refinance the total debt. Service that debt from the rental revenue and enjoy the residual net cash flow. Then use it again on future acquisitions. This is what I’m doing.

[susannicky]

This video is such a blessing to all. I achieved success after I practiced the steps below.

[Mmvexxx]

This video couldn’t have come at a better time. I bought my home before the pandemic started almost 2 years ago at a value of 640k. Single home with a huge unfinished part (it’s basically another house). I checked with builders, the city and I also worked with an architect to draft out blueprints for when I want to move forward. The current home value in this market is close to $800k. I’ve been quoted at $280k estimate to get it done. I’m looking to convert it to a 2 family (I checked with the city and it’s possible with a special permit). I’m planning on saving up close to $200k and borrow another $100k from a friend and getting this done.

Once the project is done I’m planning on cash out refinancing 100k to repay my friend. I feel like after the refinance it would be worth close to 1M.

[tontonmestandingtall]

Please explain if you want to refinance to make improvements in home and get someone off the loan, can you refinance for several reasons, how long does it take to do so? Please advise. Thank you 😊

[cam]

We are being told by a realtor that our home is worth $398 and we owe $295. We were going to sell our home to pay off debt but have realized in the process we love our home and want to stay. Now a cash our refi is an option we are looking at. We pay roughly $2, 000 a month in credit card and loan debt based on improvements to the house.

[Sharkdogb]

I looked up this video because I need some more cash for some stick investments and you answered my question perfectly thank you.

[phillipkuntze]

Get into more debt to pay debt I don't quite understand

[everyneed]

Can I do a cashout refinance to buy another property in full, rent that property out and use the income from that property to pay off the cash out refinance loan from the 1st property, and rinse/repeat?!?

[lourde]

Planning to do a cashout refinance to pay up debts and improve my credit score. Current IR is 4% going to 6% if i proceed. My question is how long before i can refinance again (no cashout this time) and hopefully by then i can get a lower IR with my new higher credit score. Thank you!

[alex]

I really think they should only be done if you put a portion of the money back into the property. That said is it ever okay to use some left over money to buy a boat?

[xmochizuki]

So you would then owe a new loan of 350k after paying off the "Old/initial loan" of remaining mortgage?
Just needing some clarification

[zxcvbnmmasdfghjkl]

So it sounds like this is an interest game, so like right now wouldn’t be a good idea to do a cash out refinance to purchase another property if my rate is under lower than the current interest rate market?

[stephentylerboniella]

I’m fairly young and my wife and I got into contract on a 4b 2.5bath 2400sq ft. house we had little no debt and about 50k cash I paid off a 2021 trd sport Tacoma with a nice cement color which has appreciated in value overtime. My wife and I decide to invest into a piece of land and a used tiny house in a tiny house neighborhood and move it on the land in hope to run STR business. While doing so I managed to score some equity right after we moved in our neighbor sold there for about 60k more than what we owed after 10% down at closing(on an investment property under our LLC.) side note I also work for a bank that it’s all financed at. The expensive new house I’m stuck under contract in won’t be done until April 2023. If I dip out of the contract on it I’m out $8500 no questions asked….I want to use the equity from the investment property and buy a house when the housing market likely goes on sale, in hopes to live in for about a year and then long term rent. Which will cause everyone to buy houses again. Thoughts?😂

[Amina-dfki]

We’re 20 years into a 30yr at 2.98%. We’ve accumulated over $90K in high interest debt. We’re considering a cash out refinance to pay off our debt but we’re having a hard time deciding if we should. Starting over with a 30yr mortgage scares me but our current debt is even scarier

[pabloray]

How long do you have to wait to take out cash from your property?

[GreaseMonkChronicles]

Great information, my wife and I bought a single family house in Dec 2020 in Maspeth ny. Our current rate is 2.65, do you think cash out refi is a good option for us. We want to get the equity out to purchase another primary residence, and rent our current home. With rates going up now I'm not really even sure if it's worth it.

[TheCrazedaarson]

Bought my house at 400k, appreciated to 640k in 2 years, taking/cashing out 70k. Bad idea? Yes, mortgage is 280 more than before

[AntonioM-vn]

I hung up the phone on a loan officer.
Old pmt 1107
New pmt 1798
Cash out amount $105k
Appraisal fee $445
My rate from 4.85 to 5.75
Old Bal 143k new Bal 261k.... He was crunching numbers, saying if I paid off this and that. Nah its going be on my terms. I need to find a short term bond or MM account to put the 105k in.. to even justify that pmt increase of $691

[meccawebb]

I’m a bit confused. So you’re saying you’re existing mortgage is 300, 000 but you need 50, 000 so when you cash out refund they’re gonna give you 350, 000 300, 000 is going to wipe out your old mortgage so my question is why is the new mortgage 350, 000? Why isn’t it 50, 000 if they paid off your 300, 000?

[juanrivas]

I need to talk with some one about cash out do you have anyone I can talk