How are these advantages possible AFTER a mortgage has been signed? Help needed as I’m trying to wrap my head around financial mechanisms – why is this a thing and under what circumstances/ conditions does a refinancing make the most sense to use?
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if you owe 25k on your home, but it’s worth 200k, you can get a loan for 150k. take that 150k in cash and buy another home. now you own 2 homes, but only pay 1 mortgage payment.
also, being able to offer CASH on a home is preferable to the seller, so you can probably get a better price. you can close within a few days if you want instead of a month with a bank. it’s just all around way easier for both parties when the deal is done in cash rather than going though a bank.
it’s slightly more complicated, because there are fees and appraisals and tons of paperwork, but i literally did this a few years ago and that’s exactly how it went.
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