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NFT: Question for Mortgage Brokers about taking out Equity

NYG27 : 1/12/2021 1:55 pm
Rough numbers, I have $180,000 left on my mortgage and line of credit. My house is worth twice that amount at $375,000.

I wanted to see if I would be able to take $20,000 out from my equity on my house, either as a refinance, line of credit or 2nd mortgage.

Although most banks I've talked to have said with all that's going on with Covid, they're currently aren't supporting any new contracts that allow someone to take out equity. They are willing to refinance and re-do my mortgage but no cash out.

Plus I'm more interested in a program that would allow me to get $20,000 from my existing Equity. Would anyone have any recommendation on what programs or banks that would allow that is this current climate?
I'm friends with a mortgage broker  
McNally's_Nuts : 1/12/2021 2:14 pm : link
from my previous job at Citi. I can connect you guy if you want to talk
Assuming your credit and cash flow position meet the requirements  
BradberryGlue : 1/12/2021 2:28 pm : link
the other info you posted sounds like you would definitely qualify for a Home Equity LOC.
I would not do a LOC or any variable rate now  
pmmanning : 1/12/2021 5:06 pm : link
Inflation is here and rates will be climbing. I share building space with mortgage attorneys and they can't keep up with the amount of demand for closings esp. cash out mortgages.

Check with another company and make sure to go with a fixed rate product.

This is my .02 and I am by no means an mortgage expert, good luck.
I would not do a LOC or any variable rate now  
pmmanning : 1/12/2021 5:06 pm : link
Inflation is here and rates will be climbing. I share building space with mortgage attorneys and they can't keep up with the amount of demand for closings esp. cash out mortgages.

Check with another company and make sure to go with a fixed rate product.

This is my .02 and I am by no means an mortgage expert, good luck.
HELOC  
Dang Man : 1/12/2021 5:34 pm : link
Downside is that there is risk in a variable rate. Upside is you’ll have access to more thank the $20k you’re looking for. Without meaning to pry, how long will you need access to the cash for and how long would it take you to repay? I have heard you can get HELOC rates under Prime right now for 70 or 80% LTV which is the category you’d fall into.

If you can pay back the cash in 1-2 years I don’t see the risks of rates rising too much over that time frame. Moderate but unless the economy does they’ll be careful in how fast they raise rates.

You only pay interest on what you borrow and you don’t have to start paying back principal for a set number of years, in some cases 5-10. If you think you can repay the loan before that 1-2 year window where rates move significantly higher then it makes sense. Sorry for the long-winded response but there are a lot of variables.
take a look at Third Federal Savings & Loan  
Csonka : 1/12/2021 6:54 pm : link
Substantially lowered my rate and I took cash out. And they were willing to go to 80% LTV. Like you said, most places aren't even considering cash out and nobody else I talked to would go beyond 70% LTV ... not that the LTV would matter in your case.
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