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refinancing and cash out

I bought a condo 12 months ago with my best friend for 1million dollars and 25% down. What a bad idea :) One year later, I would like to buy him out and thus need to refinance and do a cash out. The house as per my agent is now worth 1.15/1.2million and I need 160k cash out to buy my roomie out. Thank you!

ps: I have 2 loan on the house: 1st mortgage with 615k and second mortgage line of credit for 129k.
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July 25 2013 - San Francisco
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Answers (4)

You have three options: refinance just the first mortgage and take cash-out on the first mortgage. You would need the line of credit lender to agree to subordinate their loan to the new first mortgage.

The second option would be to consolidate both loans together and add the cash out to one new first mortgage.

The last option would be to refinance the line of credit and add the cash out to the equity line.
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September 14 2013
Possible Solution:

Refinance current 1st into conforming loan, subordinate current 2nd, get friend off title. Following such take out another 2nd and pay him off. You should be able to obtain a line of credit up to $250K. That would leave a decent chunk to pay him...for the rest maybe you could work out a side deal.  
What fun.
You know what they say about friends and business ???  Been there done that.
The good news is the property has seemingly increase in value and not the opposite!
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July 25 2013
Our bank can help you with a Jumbo Cash Out Refinance...If you would like contact me under my profile. 
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July 25 2013
Talk to your local lender or mortgage broker about refi and cashing out.  If you need reference, please contact me.
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July 25 2013
 
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