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queef_quencher OP t1_ja333vq wrote

Reply to comment by 93195 in Is it possible to pull cash out when refinancing VA loan to conventional loan? by queef_quencher

So then is the general view that using cash-out refi money to purchase a second home, in my case using the VA loan, is usually not a good idea?

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93195 t1_ja33o73 wrote

I wouldn’t say that. I would say it depends on the math. What’s the rate of the old loan, what’s the rate of the new loan, how much will the property rent for, how “in demand” is the area (lower chance of extended vacancy), how does the expected rent compare to your mortgage and maintenance costs, how much is it going to cost you to buy a new place to live yourself and move there?

It’s not an inherently bad or inherently good idea. It’s case specific, depending on the math above.

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queef_quencher OP t1_ja350ct wrote

Understood, thanks for taking the time to respond. I really appreciate it!

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