Whether you’re looking to buy a second home, vacation home, or investment property, coming up with a down payment can be challenging. A cash-out refinance could be the perfect answer.
How Much Cash Can You Get?
The amount of money you can receive for an investment property down payment depends on your
- Home’s value
- Mortgage balance
The loan to value (LTV) for a cash-out refi is typically 80%. Here’s an example:
- $500,000 home value
- $200,000 current mortgage
- $400,000 max loan amount
So, with a new mortgage of $400,000, you would pay off your current loan. And then, you’d have $200,000 (minus loan fees) for another property.
What if I Don’t Have a Mortgage on My Home?
If your home is paid off, and you don’t have a mortgage, you’d be able to get $400,000 in the above scenario.
The advantage of getting a mortgage on your primary residence and paying cash for the other property is that you’ll get a lower interest rate. That’s because interest rates for primary residences are lower than rates for investment properties.
The Rental Market is HOT!
Almost anywhere you look, the market is very active. And rental rates are increasing.
Whether it’s a single-family home, duplex, triplex, or fourplex, buying a property is an excellent investment. It’s a savvy way to take advantage of your equity.
We Can Finance Your Next Property
Whether you need extra cash for the down payment on another property or have other uses for the money, we’re here to help.
We can close a refinance in 30 days and a purchase loan in as little as 14. Contact us today, and in just a few minutes, you can learn about your options.
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