The value of your home is basically what an able buyer is able to pay for it and what you are willing to sell it for. Foreclosures and short sales are considered distressed sales and are not market value. You should be able to go to your county's tax assessor's and look up your address. From there, search the the plat and see the areas around your home. The most recent sales will show up on the map. Make sure you compare apples to apples. If your home has a basement and the one that sold recently does not, then yours will be worth more. Feel free to e-mail and I'm happy to help. email@example.com. I'm in the Athens area.... more
You can refinance the property as long as you don't have more than 4 mortgages. They will count the rental income as passive income, usually about 75%. You must have owned the home for 6 months and they will usually limit the refinance to 75%. Let me know if you have any further questions.
Banks are tightening down on all loans especially investment loans. You can refinance the loan, but the bank will want to insure that you have owned the home for at least 6 months and will only want to lend about 75%. Right now, investors are limited to 4 mortgages per person where it used to be ten. This is in the process of being reversed. Let me know if you have anymore questions.
Carisa Migliore, Reator
If your figures are right, then it shouldn't have any impact on your ability to sell the house. If you take out a HELOC for $55,000 and draw down the full amount, and the home is worth $125,000, then you would still have plenty of equity to cover your realtor commissions and other expenses associated with the sale. You would not be in a situation where you need your lender's permission for a short payoff in order to sell the home, so the HELOC shouldn't have any impact. Again, that's *if* your figures are correct.
A caveat for you: Equity lines are usually marketed as having little or no closing costs. But as we all know, there's no free lunch, right? If you read the fine print, you'll generally find that you're on the hook for some or all of those closing costs in the form of a penalty (perhaps called an "early closure fee") if you close your line of credit prematurely. For most homeowners, this is an insignificant risk. But if you're trying to sell your house soon, it could make the true cost of this interim financing quite high. Depending on your time horizon, you might be better off selling the house and using the proceeds from the sale to pay off your other debts, rather than taking out a HELOC.... more