Can i borrow additional funds to buy more land when i refinance my house?

Hanna
My house is valued at about 165, 000.00 and I owe about 115, 000.00 on it. There is about four acres of vacant woodland adjacent to my property. I want to make an offer of about 3000 and acre on the adjacent property. If I refinance my house will I be able to include the 12, 000.00 the total amount of the refinancing loan? 90% of what the current value of the land is, is approx. 152, 000. If I refinance can I borrow an additional 37, 000.00 to pay for the adjacent land and other improvements on my property (new shingles and extending a canal into a boat basin). Thanks. I know I should be talking to my banker about this, but I wanted to get some input from some of ya'll out there. Oh yeah, my credit rating is around 750 and I owe 5800.00 on another loan.

Danilo
Right now you can only borrow up to 80% of the value on your principle house without getting PMI (which you don't want). If you get appraised for the full 165K you can take out up to 132K, which would give you enough left over to buy the adjacent land. However, taking more than your other loan is worth is called a "cash out" loan and you'll get hit by another .25 or .5 interest rate increase. It's like that across the board. If I were you I would take the rate increase, get the cash, and buy the land. Land is worth more than the 20 bucks every month and it's something you can pass on.Good luck.

Laverne
You can probably borrow 90-95% of the appraisal amount. You may be able to borrow up to about $156, 000 if it appraises for $165, 000. After paying off old loan of $115, 000 that would leave you about $40, 000 to do your other stuff with. Assume $3, 000 to refi so maybe only $37, 000 will be left.You will be paying PMI.

Breana
This is definitely a question for a banker or loan consultant ;-)Since all banks are different I would ask them - find a lender where you can get online help or email this question, then copy and paste until you find a lender who says "Ok!"

Desire
Your max loan FHA cash out will be 85% or $140, 250 with the rules today. You may get your home town small bank to do 90% that will be rare if you doI am a mortgage banker in TN

Malissa
It depends on the bank. Some lenders will let you take a loan out for 100% of the house's worth others its 80%