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RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 28357
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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Can you refinance a mortgage for more money then you owe?

Customer Question

Can you refinance a mortgage for more money then you owe? Get money back.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  RealEstateAnswer replied 1 year ago.

Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help with your question and concern

Expert:  RealEstateAnswer replied 1 year ago.

No, you can not. A lender is not going to refinance your loan and allow you to take more money, then there is equity in the home. The reason for this, is because the home is a security interest. If the loan is not paid, the lender can foreclose to get paid, on the money lent. However, if they allow money to be taken out, above what the home is worth, they are at a HUGE risk for loss, if the value of the home does not increase or the loan is not paid down over time, to make them whole.

Customer: replied 1 year ago.
I owe 260,000.00 the house is appraised at 349,000.00 , I only wanted 15k extra.
Expert:  RealEstateAnswer replied 1 year ago.

Thank you for the clarification. If that is the case, then you do not have to refinance and can speak with your lender/bank about a home equity line of credit and take a second out on the property. It should be at a fairly low interest rate and you can pull the extra 15k and use it for your needs.

Customer: replied 1 year ago.
Well I am refinancing for lower rate and to get rid of the PMI, so I was wondering since I am already refinancing is it possible to ask for more money than the currant mortgage?
Expert:  RealEstateAnswer replied 1 year ago.

You can ask if they will do it, as every lender has different underwriting requirements. Remember, you do not have to use your current bank and can get rates and other options, from different banks. If they will not allow you to simply pull it out on a refinance, you will just have to get the equity line