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90% LTV Refinance

I have a home located in Canton, Baltimore. I owe approx $300,000 on it and its approx appraisal value is $425,000. I'd like to find at least an 85% but hopefully a 90% LTV Cash out refinance on it (It is my principle property) in order to use the equity money to purchase an investment property. Is anyone aware of smaller banks or credit unions that have a high LTV cash out refinance available? Credit score ~ 740ish

Thanks
  • July 17 2013 - Canton
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Answers (7)

Have you considered just financing the investment property you wish to purchase?  Even if it is in need of repairs, there are options to finance the renovation cost if necessary.

I am local here in MD - feel free to contact me anytime with any questions
  • November 06 2013
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What do you need the cash for? How much do you need? If you have a great rate you don't want to mess with that. If you have friends/family you can borrow from and avoid messing with the rate that may be an option Everyone has 85% cash out available. Many investors will give you a home equity line up to 90%. You're probably better off getting an appraisal in the summer and spring when the real estate market is more in full swing than during the cooler months. Keep an eye out in home valyes in your area. You might be surprised by what normal sales are going for.
  • October 23 2013
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A HELOC is an option to get 90% Financing as was mentioned. The benefit lies in the length of time you plan to keep the balance. If you plan to pay off the cash out portion in the next 5 years or so, a HELOC would be better than an amortized loan. If you plan on paying it off slowly, you may want to roll it into one loan with your current mortage. Another thing to take into consideration is your current rate. Rates have gone up to where they were a few years ago. For a cash out loan today at 85%, you may be taking your rate up on the sum of your debt if you refinance the whole thing. If you have a rate in the 3's to low 4's on your current mortgage, I would do the HELOC even if you plan to pay it off over time. As was briefly touched on earlier, You will spend thousands of dollars on a full refianance and a HELOC will not cost you anything but an appraisal, if that.
Let me know if I can help.
All the Best,
  • July 17 2013
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Looks like 85% is going to be your max unless you are veteran, VA will go higher on a refinance. 

Although a home equity line may work for you, discussing your specifics with a mortgage professional to help to determine your BEST option for the refi and the purchase will be helpful. 

You will realize a little more money than just the cash out when refinancing.  With  "skipped payment(s)" and an escrow refund, you may come a little closer to meeting your goal. 

Warm Regards,
Bridget "Maryland Mortgage Mama" McGee

  • July 17 2013
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I can only speak for CA but the highest we got here is 85%.  Barb is on the right track with the HELOC or 2nd mortgage.  You would probably get a better rate and deal with a second then to redo the 1st.
Best of luck!
  • July 17 2013
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It's likely that you'll only find an 85% LTV cash out. Why not look into a home equity loan? There are still a few lenders that do these.
  • July 17 2013
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Good morning, 85% is what you would probably get these days. 

  • July 17 2013
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