Can I borrow additional funds to buy more land when I refinance my house?
Right now you can only borrow up to 80% of the value on your principle house without getting PMI (which you don’t want). If you get appraised for the full 165K you can take out up to 132K, which would give you enough left over to buy the adjacent land. However, taking more than your other loan is worth is called a “cash out” loan and you’ll get hit by another .25 or .5 interest rate increase. It’s like that across the board. If I were you I would take the rate increase, get the cash, and buy the land. Land is worth more than the 20 bucks every month and it’s something you can pass on. Good luck.
