Quote:
Originally Posted by Bette
Depending on what state you are in, it's possible to cash out on a free & clear property. However, in my state of Florida, I disagree with the above items.
There are some lenders, one of which is Wells Fargo, who will not do a HELOC (home equity line) in the first position. You can have a fixed rate mortgage in the first position (however small) and then a HELOC behind it.
The rates on a cash out are dependent on your loan to value, your credit score, type of property, etc. The rates are not 1% to 3% higher. I'm a mortgage broker; I do cash outs all the time.
Some lenders require you to wait 6 months before a cash out. I will check guidelines on this b/c they change frequently. I will check on the IRS guidelines; not sure on that.
Good luck.
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Thank you Bette. All I want to accomplish is tax deduction (without
necessarily having to put it back in the house). I would only cash out around 25% of value. My credit score is high 700s or low 800s - can't remember.