Why cash-out the Homestead...this time
If you are lucky to have some equity maybe 35% or so you may want to consider a refinance to a maximum FHA eligibility. Reasons for this refinance? As home values decline you will not be in a position to take out equity if you have equity available only to 80%. Lenders will not approve an equity line or home improvement loan behind your first mortgage. I have found that many clients are making the move to refinance max cash out and bank the extra money. Tuition's, consolidations, future down payments for another home will be difficult if you have limited equity. If your home declines after you take the loan to the maximum of value it won't be a concern. If you were to sell and have a small short fall you will have the cash to satisfy that need.

This time is about cash out to save ...rather then to spend. Jim Brown, 732.245.5121 SHL NJ