Home > Case Study, Line of Credit, Refinance > Case Study #1: Refinance (Laguna Beach)

Case Study #1: Refinance (Laguna Beach)

OPPORTUNITY: Valued borrower in Laguna Beach pursuing a refinance of $1,525,000 mortgage only to have the second appraisal return at $1,750,000 allowing for a refinance at a reduced $1,312,000 at 75% LTV.

Refinance: $1,525,000

SOLUTION: LEVER INCOME PROPERTY FOR ADDITIONAL DOWN PAYMENT FOR REFINANCE OF PRIMARY RESIDENCE.  Upon profiling, valued borrower also maintained an income property in Laguna Beach that was owned outright. Simple fix is to provide a $200,000 line of credit secured by the income property to make up the difference.

Property Value: $1,750,000

Mortgage: $1,312,000

Cash: $13,000 (borrower’s discretion)

Income Property Value: $972,000

Mortgage: $455,000

LINE OF CREDIT: $200,000

CLOSE PENDING

If you have a similar case, or question, please e-mail me on ceisaac@ymail.com

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