I would like to refinance my primary home take some money out and turn it into a rental home. Is this something that is commonly done and how do I go about doing this? I currently owe 115 on the home. The appraised value for the home should be in the low 200’s. All comments are welcomed and thank you in advance.
Sure it’s common - just call a few mortgage brokers in your area, preferably ones who specialize in lending for investment properties.
Tell them you plan to rent it and want a cash out refinance. You should be able to get a new loan for 75-85% of appraised value. Be sure to look at how much you will have to pay in fees and closing costs - not just the final payment amount.
What’s your time frame, you could go as much as 90% cash out depending on your Profile: credit, reserves, mortgage history, and employment income prove ability (stated vs. full doc) I would look for correspondent lenders and mortgage bankers, not brokers. The correspondents and bankers have much more flexibility than brokers in getting things done.