How cash-out refinancing works, how much you can pull, and how investors use it to grow.
Yes. A cash-out refinance is one of the most common ways investors grow a portfolio. Instead of saving up for the next down payment, you put the equity you’ve already built to work.
You take out a new, larger loan on a property you already own. The new loan pays off the old one, and you receive the difference in cash.
Example: Your 6-unit apartment building is worth $500,000 and you owe $200,000. At CCIG’s 75% loan-to-value limit for multi-family, a new loan could be as large as $375,000. After paying off the $200,000 balance, about $175,000 is available, before closing costs.
It depends on the property’s appraised value and the lender’s maximum loan-to-value. CCIG lends up to 80% LTV on 1–4 unit properties and up to 75% on multi-family, mixed-use, and commercial, with loans from $75,000 to $5,000,000. How LTV works.
Real example: A business owner in Chelmsford, MA needed funds to buy a new investment property on a deadline. CCIG closed three cash-out refinances on properties he already owned and the new purchase at the same time, so he had the cash to close on schedule.
Cash-out refinancing isn’t just for rentals. A restaurant owner in Lawrence, MA pulled equity out of his building through CCIG and lowered his interest rate in the same loan. Commercial loans.
Tell us about the property and a CCIG loan specialist will walk you through your options.
