2007-01-19 10:32:22 · 9 answers · asked by Josep 1 in Business & Finance ➔ Renting & Real Estate
To make it simple, yes you can borrow all the way up to the value of the property. That's on the extreme side of lending and slightly higher rates.
It can be one loan or two depending on your choice and variables. Go sit down with a local lender and they will explain in more detail with rates on different scenarios.
Fannie Mae will let you take equity out of the house with no seasoning meaning doesn't matter how long you have owned the property if you own it now. If you are just now buying it and want cash out of it generally no, you will not be able to take cash out of the property with the initial purchase.
2007-01-19 11:28:13 · answer #1 · answered by Lee P 2 · 0⤊ 0⤋
Traditionally, lenders like to see a LTV of 80%, especially for the best rates and to avoid PMI. So what you paid for it isn't much of a factor but what you still owe on it most certainly is.
80% of $175k is $140k. If you owe less than $140k that's generally what you can borrow -- if you owe $120k, you can borrow $20k. If your LTV goes higher than 80%, you'll generally be looking at higher rates for any loan and possibly PMI if you're refinancing the whole note and cashing out some equity.
Whatever your numbers work out to be, there's always a lender who will probably take a risk on you. For a price. Keep in mind the possible impact that any financial catastrophe may have -- the loss of your home -- before rushing out to borrow against it.
2007-01-19 10:45:25 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The difference is your equity in the property, but it doesn't mean you can borrow against it. Most lenders will only lend against a percentage of the valuation, maybe 75-80%. Especially if you're not using the loan to purchase real estate.
2007-01-19 10:39:30 · answer #3 · answered by Anonymous · 2⤊ 0⤋
Yes, your statement is true, however beware! Closing costs with a mortgage company for a refinance can reach 9k easily. That means that you are already paying 9k to access 25k in equity. Mortgage companies will not do HELOC's in most cases. Your best bet is to go into your local bank, and tell them you want a HELOC for the amount in which you need on your property. If you have any questions, feel free to email me at blakerobinson@experiencedlenders.com
2007-01-19 14:56:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
sure, you've $14000 of fairness. you do not pay a lot less activity because you've fairness in the homestead. The activity is depending on the homestead fee. because you're putting $0, it truly is a particular application personal loan (VA? USDA?) = you'll nonetheless ought to pay loan coverage, as portion of the requirement of your man or woman loan. even besides the undeniable fact that you've about 11% fairness at your position of abode on day #a million, there is no longer some thing you may do with fairness till you sale the resources (or some different issues).
2016-11-25 21:09:59 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Depends on the loan originator and the appraiser. Lots of scams going on right now with falsely high apprasals. Check with your bank or loan originator.
2007-01-19 10:37:14 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Yes, you can borrow against equity.
2007-01-19 10:46:41 · answer #7 · answered by Chris P 3 · 0⤊ 0⤋
Yes, but you may have to get a home improvement loan instead of rolling it into your mortgage
2007-01-19 10:36:51 · answer #8 · answered by Flemming C 4 · 1⤊ 0⤋
Yes.
2007-01-19 10:35:27 · answer #9 · answered by Anonymous · 0⤊ 1⤋