If i buy a house with 20 down at 150k and it appraises a year later at 300k ?

Glennie
about how much money could i get towards another house by refinancing vs a second mortgage? about how much?

Johnette
Lenders do not like to lend to buy investment property without you already having the minimum 20% toward the said property. Lendable equity is 70% as a rule. So if you had 150k in equity, you would presumably be able to borrow about 100k but lenders have really tightened up here in the US.

Ching
I would get a second opinion on the appraisal. Also, after only one year of payment history, you may have a tough time getting a good rate for your second, if you can even GET a second. If you can handle the payments, I'd say take ask about an equity line of credit. That way, you take only what you absolutely need when you need it, at a fairly decent rate. I'm sure you've got enough sense to make sure there's no prepayment penalty on ANY loan you take, and that adjustable rate mortgages are absolutely idiotic unless it's double digit interest rates and you're only in the loan for a few months, with a cap on the adjustments. Best wishes for your investment property, but if I were you, I'd check out what benefits may be available if you wait until your owner occupied requirements are taken care of on the first home and then take another owner occupied loan and move into the second home. Just an idea, but if memory serves, a good one for the pocketbook.

Elise
20% of 150k is 30k, so we assume you you borrowed 120k for the purchase? Also assume you have (or want) 20% on the secnd house? 300k minus 60k (20%) is 240k. Minus your initial loan of 120k, leaves 120k towards another house. Too many assumptions not enough facts. Talk to a home loans officer at your bank.