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My home is paid off and I'd like to refinance with a large cash out ($417K). There will still be more than 20% equity remaining. Do lenders still do those types of loans at competitive rates? If so, who? - Thanks

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Look at a PenFed Home Equity Loan.

yes, they exist
fha to 85%
conventional to 85%
home equity- varies a lot

let me know if any other Q's

I'm looking to do the same. Best I've found locally at a broker for cash out refi is 3.5% no pts / no fees for 80% LTV.

Penfed has 3.25% with 0.75pts and some fees. Anybody found better?

How long? Penfed has a no cost 5 year 1.99 HEL.

I want a 30 fixed rate.

Before you do it I hope you realize that the interest will not be tax deductible. We had a client do this on a paid off second home and ended up with 20k a year in unusable mortgage interest.

I have two paid off house in New Orleans trying to do the same thing but some one waste my time now I don't
Know who to do it with in New Orleans help!!!!!!

awstick said:   Before you do it I hope you realize that the interest will not be tax deductible. We had a client do this on a paid off second home and ended up with 20k a year in unusable mortgage interest.

Are you a tax advisor? Note this is not a 2nd home. OP doesn't mention proceeds to be used for home improvement, so we can assume that's not in play -- sounds like a true cash-out-refi. I believe OP should at least get deducts on $100K of the principal, no matter how it's used, right?

Suggest this TurboTax article and/or Pub 936.

Aside: anybody know a way to structure a sale to self of the property so as to facilitate bona fide 100% purchase financing on what otherwise would be a cash out?

Yes they do cash outs with good credit.



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