Cash Out Refinance After Remodel
Refinance After Remodeling
Cash out refinance after renovating your home.
Remodeling your home can add substantial increases to your homes value, resulting in an increased amount of equity in your home. Assuming the upgrades and renovations were the type of home improvements that do in fact increase value, you may be in a better position to refinance and take cash out.
The first steps you should take are getting an accurate idea of what your home is worth, identifying your exact loan balance, and then seeing what your current loan-to-value ratio is. Then, you can prequalify for a cash out loan and see what terms you are offered. Assuming these are agreeable terms, you will then want to proceed with an actual loan approval and order an official appraisal.
Keep in mind that the maximum LTV offered is 85%, unless you are a veteran (which may qualify to cash out up to 100% of their home’s equity). So if after remodeling your new home’s appraised value is $300,000. If you qualify, you can take out up to 85% of $300,000 which is $255,000. If you currently owe $150,000 then you will be eligible to take out the difference of $255,000 and $150,000 which is $105,000. When you speak with a loan specialist, we will provide you with all of the details you need in order to make an informed decision about refinancing.