Posted on: 26th Mar, 2009 04:16 pm
I have a condo-hotel unit in FL & would like to take out some cash to help my daughter with med school..can you still get cash out of a mortgage in today's tight market. Is the rule of 25% loan to value ratio still in effect? We paid $600K, the unit is worth $400K...we owe $200K. Can we take $300K out?
We have excellent credit & no other mortgages.
We have excellent credit & no other mortgages.
hi susankcj,
you can take a cash out loan provided you have equity in the property. you can speak to your current lender and check out if you can get a cash out loan. however, you can speak to the other lenders for a cash out loan as well. as far as i know, homeowners are allowed to refinance up to 80 percent of their propertys value. if you want to borrow more than 80%, you'll have to go for pmi.
thanks
you can take a cash out loan provided you have equity in the property. you can speak to your current lender and check out if you can get a cash out loan. however, you can speak to the other lenders for a cash out loan as well. as far as i know, homeowners are allowed to refinance up to 80 percent of their propertys value. if you want to borrow more than 80%, you'll have to go for pmi.
thanks
there isn't much of a mortgage market for condotels.
I agree with George, the condotel is a serious problem especially in Florida where many lenders will not even finance a traditional condo anymore. That being said, your scenario will also not work because you owe $200k on a property worth $400k and you are trying to borrow an additional $300k. If you are saying that you want to cash out an additional $100k to bring your total loan amount to $300k, then that would work.
