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How do you cash out of a home that has equity in it, and what sort of financing agency do you go to to do this

01 Mar

Do i see a conventional lender about this or a hard money?

 
5 Comments

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  1. MLaw

    March 1, 2010 at 1:43 am

    Treat it like any other first morgage loan. Get the best deal you can from a conventional lender.

     

  2. ogrendle

    March 1, 2010 at 2:23 am

    MLaw is right. Start with whoever has the first mort

     

  3. fukinluckyfuker

    March 1, 2010 at 3:05 am

    Find a couple mortgage brokers or bankers and get a couple quotes.

    “Hard money” is a term generally used for people who have just ridiculously bad credit, or zero verifiable income. The lender will lend solely based on the collateral, in this case your home. You will pay rates likely double what normal mortgage rates are today, and only be able to finance maybe 65-70% of your home’s value. Hard money lenders lend assuming that they will not get paid back, and may have to wait a year to get their money back after foreclosure. That can easily eat up 20% of your equity right there, so that’s why they leave themselves so much extra room.

    If you have a decent first mortgage, you may just want to do an equity loan (second mortgage) or line of credit.

     

  4. gtofinancial.tomvoli

    March 1, 2010 at 3:07 am

    As long as you own the home this is a standard refinance.

    If you are talking about buying a home at below market value and getting the equity out this requires 2 transactions. The first to buy it and the second to refinance it. However, many lenders do not allow for increases in value for an extended period. This is anywhere from 6 months – 1 year. Those that do allow it will charge accordingly.

    Here is some additional info. Hope this helps.

     

  5. dajuan_n_only

    March 1, 2010 at 3:15 am

    A conventional lender will do fine. Log onto http://www.justgetaloan.net for acces to great loan programs, service and low rates. As long as you have equity there should be no problem with getting a cash out refi. For further assistance feel free to contact me direct at 866 530 7300 ext 7305 or by email at jfreeman@justgetalaon.net