Need help understanding how refinancing works - Posted by Liliya Nelson

Posted by Maiysha on July 12, 2003 at 07:23:14:

Refinancing is a loan you do when you want to payoff bills and consolidate your payments in to one payment or when you want to get some equity out with out making two payments. Once you have the property then you should be able to do things financial with it that you weren’t able to do before you bought it. For example: getting the full-appraised amount of the property instead of a percentage of it

By working this deal the way you are your property will more than likely appraise for more than it does now so that is automatic equity. Giving you money and something to work with when you refinance should you at that time see something else you want to buy.

Hope this helped! Good luck!

Need help understanding how refinancing works - Posted by Liliya Nelson

Posted by Liliya Nelson on July 10, 2003 at 23:08:54:

Hi! My husband and I are brand new to real estate and I’m still not quite clear how re-financing works. We found a deal on a four-plex. The builder is asking 255,000 and it appraised at 270,000 before landscaping, A/C and highspeed internet is added. We got 95% financing and we were planning on having the builder hold the note and then turning around and refinancing to get the 15,000 out to pay our 5%. I have a general idea of how it works but maybe someone who knows more can explain it clearer to me. Thanks for your help!