BRRR METHOD. I don’t understand refinance.

SCENARIO: I find a house I like. £100k house – (25%)25k deposit and (75%)75k bank loan. House renovations is 50k so I’m at a loss of 150k altogether. New property value is 200k. To refinance again it’s (25%) 50k equity and new bank loan 150k.

^ In this scenario what happens to the original 75k I owe the bank. I’m poor at maths, any help will be appreciated!

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SCENARIO: I find a house I like. £100k house – (25%)25k deposit and (75%)75k bank loan. House renovations is 50k so I’m at a loss of 150k altogether. New property value is 200k. To refinance again it’s (25%) 50k equity and new bank loan 150k. ^ In this scenario what happens to the original 75k I owe the bank. I’m poor at maths, any help will be appreciated! submitted by /u/TopGrime [link] [comments]

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