Property Refinances: has to have a "Net Tangible Benefit", that is beneficial for you the borrower.

A Net Tangible Benefit can be any of the following:
Lowering rate than the current rate, 'savings on interest' expense.
Changing terms of ammortization to pay off your loan faster, for example: going from a current 30YR Term to a 15YR or a 10YR term with a lower rate.

Home Improvements or Other Cash Emergencies:
Addition of an ADU, getting cash out in order to build a ADU or DADU.
Refinance Cash-Outs for Debt Restructuring, when a client may have other liabilities with higher interest and it maybe a good option to consolidate all liabilities for a lower payment.
Refinance Cash-Outs needed for Home Improvement, payoff of IRS debt, payoff of other debts, such as auto loans and credit cards, or a separate business investment, a medical emergency, or to pay for education for a son or daughter, or whatever other reason.

Other reason for a refinance can be because of a:
Divorce, or Splitting of Assets and or Liabilities.
Disagreement between real estate partners, that borrowers wants to change the owners of the liability.
Or changing liability ownership or removing some other owners from title based on an agreement between the partners.

Instead of refinancing the first, for different reasons could be adding a 2nd loan as a separate 2nd or as a HELOC:'Home Equity Line of Credit'.
Sometimes instead of a Cash-Out and refinancing the 1st loan, it could be best to leave the 1st loan intact and do instead a 2nd loan;
That way you can keep the low rate of the 1st loan, and just a get a 2nd loan to pay off or consolidate debts or get access to cash from your home equity.
It really depends on the situation and the rate at the time, but sometimes is more beneficial to just get a 2nd loan.

HELOCs and 2nd Loans Fixed, have been in demand lately because borrowers do not want to loose the lower rate they have on their first mortgage.
Additionally for building an ADU or DADU on the property, a 2nd loan could be a good way to get cash to build such units.

Whether you need a: Refinance 1st / HELOC / 2nd or a Purchase Loan.

Contact us at: 206-334-2238

Consultation is free of charge. We only get paid when your file closes successfully.