Opting for cash out refinancing is one method that I would recommend to someone that is serious about building out their real estate investment and property portfolio. You are able to take out a new mortgage with a principal that is larger than your current mortgage. Many a person has been able to do this and get a lower interest rate and with the added bonus of getting the cash they need for their investment venture.
The home equity that we have in our possession is really the part of our home that we own. This is built by the payments that we make to our mortgage and through the appreciation of the value of our homes. This means that our home equity is often trapped and unavailable to us unless we take home equity loans or refinance our mortgage. Cash out refinancing allows us to access this equity. We are able to use this cash from the equity that we get and reinvest it into our property portfolio.
Broken down simply in the form of an example we will see how the equity is made available. Let us say that you own a home and that it is mortgaged to the sum of $200,000 and you have repaid a certain amount. Let us say that that amount is $100,000. Then you have...
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