EQUITY OR REFI LOAN? - Posted by GREEKVESTOR


#1

Posted by DaveG on November 16, 1998 at 22:13:36:

hi,
I just got my first prop by getting it on contract (24k purchase price, $300 down) and then refi’d for the appraised value. (44k)
I got an 85%ltv and pulled out 11.5k. Things I learned:
If you have less than outstanding credit, get it on
contract with no or low down, find a lender who will refi with no seasoning. This allows you to borrow against the appraised value. A straight purchase is against the
purchase price plus you have to come up with a big down
payment. You need to first call your lender and tell
them what you want to do. If they wont refi then look
around, maybe get a reputable mortgage broker working
for you too.


#2

EQUITY OR REFI LOAN? - Posted by GREEKVESTOR

Posted by GREEKVESTOR on November 16, 1998 at 21:12:14:

Hello,
I thank you in anticipation to your comments.
Facts:
20 days ago I bought my vacation home for $54,000. The lender appraised it for $95,000 “as is”.
I need money to buy one more house nearby and rent-it-out. I found a lender that will give me a loan based on the appraised value of the home I purchased.
My dilemma is as to how to pull-out the money from the house? with an equity loan? or refi “cash out” loan?
Which will be the cheapest? what’s best?


#3

Re: EQUITY OR REFI LOAN? - Posted by mjs

Posted by mjs on November 17, 1998 at 11:43:38:

Try talking to the owners to see if they will take a note instead.
Is a broker involved
How much $$ do they want – (need- inquire)
Find out what they need?
You need more info to get more help
Usually owner occupied 5yrs or more refi is better
short term, equity = which usually has a higher interest rate