Is a cash out refinance the best option?
This is my first time selling a home and I am not familiar with the process. I own a condo in the SF Bay area and plan to move to the Oregon Coast. I owe $215k on the condo and estimate its value to be $650k. Is a cash out refinance the best option? We can use the money to make a down payment for a new home and the rest for repairs if needed. What complicates things is that I have a tax lien for around $55k for back taxes when I was out of work for 3 years. What should I do? by malin664 from San Francisco, California. Mar 24th 2022
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,843 contributions
Do you plan on selling the existing home or keeping it? Regular mortgage lenders on like a 30-year fixed have no interest in a short-term cash out refinance you are going to pay off right away. The correct loan for this is a bridge loan, which is essentially a home equity loan, but the difference is they know it is short-term, and the rate ad costs will be a bit higher for the big risk, but little reward of you paying it off so quick. On the other hand, if you are going to keep the home, a cash out refinance may be right... But note if you are turning it into a rental, the correct loan is a cash out investment loan. Talk to a local mortgage broker. I lend in MN WI IA ND and SD. Find me at JoeMetzler.com - Cambria Mortgage, NMLS 274132
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