I'm going to scab on this thread for a minute:
A friend has a million dollar mortgage on a home worth roughly $2.2 million (must be nice!). His business is struggling, and he wants to pull a cash-out second on his house to pay off the high rate, short term business loans that he's got going. With $500,000 he can get flush with his business creditors and add $100,000 in reserve to help him get things going again.
Is it reasonable to expect that he'll be able to get a decent rate? Or will lenders look at his struggling business and smaller take-home and say no way!? He also has a couple other properties that he owns free-and-clear, but for some reason he wants to use his primary residence as the source of collateral and keep the other properties clear.
Feedback?
