refi and taking out extra money

How exactly does this work? Is it possible to also take out additional money at the time of refi in order to make renovations?

Re: refi and taking out extra money

that's exactly what we're doing... we'll be getting some money at closing.

I haven't taken pictures yet (you had posted about cathedral ceiling colors) - it's really because my bedroom is a mess and I'm a little embarassed - have you started painting yet?? Because if you haven't - I'll suck it up and take pics and FM them to you...


eta: say we owe $250K on our mortgage and our house is worth $300k. We re-fied for $300K so we could get $50K in cash less whatever the closing costs are (made up numbers).

Message edited 6/12/2009 6:36:24 PM.

Re: refi and taking out extra money

Re: refi and taking out extra money

you'll only be able to do a cash out refi if you have enough equity in your home to support your current mortgage, and the additional $$ you would be taking out.

I know Jenn's example above is using numbers just as explanation, but banks aren't lending 100% LTV (loan to value) these days. There are a few exceptions, but most loans (and the best interests rates) require a max of 80% LTV. So if her house is worth $300, the bank will only lend $240 (80%) on it.

Re: refi and taking out extra money

Ditto on lisa - forgot about that.

There were no add'l fees for taking out cash - we just paid more in closing costs due to the amount of the re-fi.