Posted by JohnBoy on February 18, 2002 at 12:39:32:
It would cost you less to refinance it pulling your equity out than it would be to sell it for what’s it worth and lease it back.
If someone else buys it for what you owe plus your equity then they would have a higher payment than what you would have if you refinanced it. They would have to get non-owner occupied financing which usually runs 1 1/2% - 2% more on interest than an owner occupied loan does. They would also expect to make some monthly cash flow to justify their investment, which means they would have to get a few hundred per month above what their total payments are, including taxes and insurance.
No one is going to buy a house just to turn around and rent it out for less than what their payments are pulling cash out of their pocket each month so someone else can live in it for less.
What do you want to pull the equity out for?
What is your current interest rate on the mortgage you have?
What is the current loan amount?
How much equity is there?
Rather than taking out a second look at just refinancing getting a new first by pulling your equity out. That would get you a lower rate than taking out a second.