Anyone see issues with doing this to refinance a typical home mortgage loan? Getting some equity out to do some home updates. Is from Capital One Bank. From what I can see, Pros: No closing cost or appraisal cost, will only add 4 years from my current loan timeline, interest rate a little lower, cut about $200 off monthly note. Cons: no escrow so have to pay yearly T&I myself.

Am I missing something that will bite me down the road?

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Posted by ItNeverRains

37069

Member since Oct 2007

25438 posts

Posted on 4/15/15 at 6:59 am to Amblin

so you're going to take out a HELOC and pay off the principal loan with funds plus do some reno? Sounds fine to me but you will need appraisal. For all the bank knows you could be covering the walls in piss and feces, before they lend you money, someone is coming by to protect that loan. They may price that appraisal into the rate, but they coming appraise.

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Posted by Amblin

Member since Sep 2011

2569 posts

Posted on 4/15/15 at 7:35 am to ItNeverRains

Yes they were doing an appraisal(drive by) but at no cost to me but now say they have a previous appraisal they might can use also. And its not a line of credit but regular fixed interest 20yr loan.

This post was edited on 4/15/15 at 7:37 am

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Posted by ItzMe1972

Member since Dec 2013

9796 posts

Posted on 4/15/15 at 9:48 am to Amblin

Looks like you talking about a Cash-Out Refinance.

I have done it with home remodeling. I don't see anything wrong with it as long as the money goes back in the home and not on a boat/new car.

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