How long to wait for cashout/loan using my new home equity ?

[Creditchallengeddd]

Closed on house may 2021 financed f.h.a.and used down payment assistance program (d.p.a.) . Current payoff is 212000(includes down payment loan payoff) and estimated value on home as high as 260000 . Fico credit score 681/utilization 37percent/ one personal loan (9000 USD total credit card and person loan debt) / income 50000 annual......interest 3.4 percent home loan.......How long to wait and tap into equity to pay off higher interest credit cards and possibly keep 5000usd cash for emergencies ?    And who/what is best company/loan/process to handle this ? Or is even possible at this time do I need to wait  ?  Thanks any tips much appreciated

[chiefone4u]

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@Creditchallengeddd wrote:

Closed on house may 2021 financed f.h.a.and used down payment assistance program (d.p.a.) . Current payoff is 212000(includes down payment loan payoff) and estimated value on home as high as 260000 . Fico credit score 681/utilization 37percent/ one personal loan (9000 USD total credit card and person loan debt) / income 50000 annual......interest 3.4 percent home loan.......How long to wait and tap into equity to pay off higher interest credit cards and possibly keep 5000usd cash for emergencies ?    And who/what is best company/loan/process to handle this ? Or is even possible at this time do I need to wait  ?  Thanks any tips much appreciated

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At the current time, I'm not sure you would find a bank to refinance your current loan... as most require you to stay under 80% of value for cash out refinancing. 

If your homes value is $260,000, 80% wouldn't pay off the $212,000 you say you owe (80% is $208,000).

[Creditchallengeddd]

Thankyou

[CreditInspired]

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@chiefone4u wrote:

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@Creditchallengeddd wrote:

Closed on house may 2021 financed f.h.a.and used down payment assistance program (d.p.a.) . Current payoff is 212000(includes down payment loan payoff) and estimated value on home as high as 260000 . Fico credit score 681/utilization 37percent/ one personal loan (9000 USD total credit card and person loan debt) / income 50000 annual......interest 3.4 percent home loan.......How long to wait and tap into equity to pay off higher interest credit cards and possibly keep 5000usd cash for emergencies ?    And who/what is best company/loan/process to handle this ? Or is even possible at this time do I need to wait  ?  Thanks any tips much appreciated

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At the current time, I'm not sure you would find a bank to refinance your current loan... as most require you to stay under 80% of value for cash out refinancing. 

If your homes value is $260,000, 80% wouldn't pay off the $212,000 you say you owe (80% is $208,000).

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Agreed. 

Also, OP, work on getting your UT <8.9% to put you into an even better position when the times come to refinance and do a cashout. Because even if your LTV had been at 80%, your scores and UT may have caused you to be either declined or if approved, be at a higher APR than your present 3.5% rate. Just my 2cents.