TLDR: Business owner (me) wants to get a mortgage on a house he purchased 10 years ago for cash. Both my wife and I have 700+ credit scores. Oh and have no intention of leaving this house. We love it, and our son won't be leaving for college for another 10 years.
We have lived in our house since 2016, when we purchased it for cash. We have never had a mortgage on it. According to zillow It's worth $1.29 million. If I took out a first mortgage on my house, how much could I get?
The complicated part:
My wife and I that wasn't profitable last year. We have run it for 8 year, and grown it each year. We did $2.1 million in revenue last year which was about 30% over the previous year. we keep investing in the company and are planning on doing the same this year. We expect to put about $200k into the buiness this year. That may come from revenue, but it sure would be nice to hace access to the capital locked up in my home. We even own the comercial building we work out of (Roughly $3.5 million value, our loan on that is $2.4 million but that's all in the business of course).
We have private equity that want to lend us money, but that's credit card interest rates. I'm considering a HEI, I am well aware of their game, but 10-15 year no payments is attractive. and the APR would work out to be a credit card level.
All in all, my first choice would be a standard refinance or HELOC. (also the best cost of capital too)
So the big question: What would the Loan to Value need to be at in order to get a heloc or mortgage on our home?
I would like to refinance my home. Don't everyone jump at once.
byu/misterhubbard44 inRealEstate
Posted by misterhubbard44
1 Comment
Pretty simple math – what was your AGI average on the last 2 filed personal returns? Divide that by 12. then cut it in half.
from that – subtract any monthly payments on personal credit – car loans, CC minimum payments. also your monthly HOI, HOA and property tax.
that’s the monthly mortgage payment you can get approved for, on conventional financing.