Refinancing existing home for down payment on new home.We have a lot of equity in our existing home. I'm wondering if we can refinance our home and use the cash out for a down payment on a new home. With the interest rates low, our existing home payments would remain the same and can be covered by renting it out. If we move to the new home and it is the primary residence and the existing home becomes rental property how does this affect the mortgage on the existing property. I hope I made myself clear. Would the amount we qualify for on the new mortgage be affected by the existing mortgage? I guess I'm trying to figure out the best way to handle converting our existing home to a rental and purchasing a new home. We have excellent credit, good income and no debt (other than the one mortgage). Thank you in advance.February 27 2009 - North Dorchester00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.