The Motley Fool Discussion Boards

Previous Page

Personal Finances / Buying or Selling a Home

URL:  http://boards.fool.com/i-actually-a-few-months-ago-did-a-cash-out-30541322.aspx

Subject:  Re: Cash out refi on recent purchase Date:  2/13/2013  9:35 PM
Author:  determinedmom Number:  124773 of 127262

I actually a few months ago did a cash out refinance on a property I had purchased for cash. I was told that I could not even apply for the cash out until 6 months after the original purchase had closed. I thought that it was indicated to me that this was a Fannie requirement, but it might have been a Texas Home Equity Loan requirement. In Texas, I had to meet Texas Home Equity Loan requirements. Under those requirements I could have only borrowed up to 80% of the value of the home, although in my case I was borrowing well under that so it wasn't an issue.

The loan closed about 9 months after the original purchase and the value of the home was appraised at higher than I paid for it. (My recollection was that for that to occur the loan had to close more than 6 months after the original purchase - it didn't really matter though since I still had so much equity in the property).

(I was aware of the fact that not all interest I pay will be deductible but since my deductions will not typically exceed the standard deduction, that didn't really matter.)
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us