“Refinancing Investment Properties”
So based on our conversation, I'll need to keep it for 6mo. If it appraises for 150K, then is the maximum mortgage I can take out 105K (70%) or is the maximum cash I can take out 105K? I just want to make sure I'm clear on my numbers. I wanted to take out a mortgage for around 135K, but I don't know if I can just pick and choose the value I want, as long as it's under the appraised amount?
Unfortunately, many are a bit unrealistic when it comes to refinancing investment properties. In Amanda’s situation if her property will in fact be worth $150,000 after renovations and 6 months of ownership, the loan amount would be $105,000, not the $135,000 that she wants.
I explained to her that the property would have to appraise over $190,000. She told me that her research showed that value would be closer to $150,000, but she is willing to have the property appraised to make sure.
Image courtesy of RenjithKrishnan/freedigitalphotos.net
Subscribe to my blog via Email:
Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.