c/cash-out-refi

My cash out refi took 47 days and nearly killed the deal

I was trying to refi my house in Austin last July to pull $30k for a new roof and some kitchen updates. The lender kept asking for more docs every week and my rate lock almost expired on day 45. I had to call the processing manager and basically beg them to close by day 47. Has anyone else had a cash out refi drag on this long with a local bank?

2 comments

wyatt_shah85•2d ago

Friend told me I was wasting money on my refi closing costs and now I'm second guessing everything

A buddy of mine who works at a credit union in Portland said my lender was charging me $800 more than I should be paying just in origination fees. I always thought those were pretty standard but he showed me his numbers from last year and it was way lower. Now I'm wondering if I shop around more or just stick with who I already started paperwork with. Anyone else get blindsided by fees they thought were normal?

2 comments

vera_lewis•4d ago

My cash out refi closing got delayed by a week because the appraiser ghosted us

I was all set to pull $40k out for a new roof and driveway last month in Phoenix, but the appraiser never showed up to my house and the bank didn't call me about it until three days later, has anyone else had a no show appraiser mess up their timeline?

2 comments

rose_grant78•5d ago

My brother in law told me to refi at 6% back in March and I laughed at him

He kept saying rates were going up and I should lock in while I could. I was so sure they'd come back down to 4% like everyone was saying. Now I'm sitting here with my 7.25% mortgage feeling pretty dumb. Anyone else get bad advice from a family member that ended up being spot on?

2 comments

rosel50•7d ago

My neighbor told me to wait for a better rate before pulling equity out last fall.

He said the 7.5% I was looking at in October was too high and to hold off, which was tough because I wanted to start a kitchen remodel. I just locked in at 6.2% this week, so his advice saved me a decent chunk on the monthly payment. Has anyone else had a friend or family member give you timing advice that actually paid off?

2 comments

terrywilson•7d ago

Serious question, saw a neighbor in Charlotte doing a huge renovation with a cash out refi

They pulled $150k out of their house to add a second story and a new deck. One side says it's smart to use equity to improve the property value. The other side says taking on that much new debt with current rates is a huge risk. What's the better move here?

2 comments

charles678•9d ago

My cash out refi appraisal came in $50k under what Zillow said my house was worth

I was all set to pull out some cash to fix up my kitchen and bathroom, thinking my place in Tempe was sitting pretty. The Zestimate showed a nice, fat number that made the whole plan seem easy. Then the actual appraiser came through, and his report knocked the wind right out of me. He pointed out my old roof and said the comps he used were for updated homes, not ones with my original 90s everything. I learned that online estimates are just a starting point, and real appraisers look at stuff you totally forget about. Now my loan officer says I need to either put more money down or forget the extra cash I wanted. Has anyone else had their appraisal come in way lower than they expected, and what did you do?

3 comments

noranguyen•13d ago

The day a squirrel changed my whole cash out refi plan

I was sitting at my kitchen table in Phoenix, deep in the numbers for a $75,000 cash out to redo my garage. A squirrel somehow got into my attic and started making a huge racket right above me. I went up to check, found a chewed wire, and realized my home insurance deductible was way higher than I thought. That one noisy rodent made me completely rework my refi math to include a bigger emergency fund buffer before starting any new projects. Now I always factor in a 'critter contingency' line when I run my numbers. Anyone else had a random home issue pop up and wreck their initial renovation budget from a refi?

2 comments

taylorlewis•16d ago

Rant: My lender said my DTI was too high for a cash-out, but paying off my car loan with the cash first actually got it approved.

I had a 48% DTI and needed $25k for a kitchen, so I structured the refi to immediately pay off my $15k auto loan. Has anyone else used the cash to directly lower their debt ratio like this?

3 comments

rosel50•16d ago

Vent: Everyone told me to wait for rates to drop before my cash out refi

I kept hearing that from friends and even a loan officer last fall. I needed about $85,000 for a major home repair and was told to just wait it out. Instead, I ran the numbers and saw that even at the 6.8% rate I got, the monthly payment increase was manageable for my budget. The key was that I used the cash to replace my entire roof and siding, which immediately raised my home's value by more than the loan amount according to a quick appraisal. If I had waited for a maybe half-point drop, the repair costs would have gone up with inflation anyway. Has anyone else done the math and decided to pull the trigger on a refi even when rates weren't ideal?

2 comments

cameronb52•18d ago

Serious question, my appraisal in Austin came in $40k under what the online estimate said

I was set to pull cash out for a kitchen reno based on a Zillow number, but the real appraiser saw some foundation issues I missed. Now my loan terms are way different and I have to rethink the whole project. Has anyone else had a big gap between an online estimate and the actual appraisal?

2 comments

emery879•20d ago

Update: I pulled cash out for a kitchen reno expecting my payment to jump, but the rate drop kept it flat

We got $85k at 5.25% last fall, replacing a 7% loan from 2019. Has anyone else seen their payment stay the same or even go down after a cash-out?

3 comments

terryb11•22d ago

Back when rates were low, I pulled out $25k for a new roof and it saved my house from major water damage a year later.

Anyone else use their cash out for a big fix that ended up being a total lifesaver down the road?

2 comments

holly_green82•24d ago

Pro tip: People keep forgetting to check their HELOC rates before a cash out refi

I saw a friend in Denver almost lock a 7.5% refi last month when his existing HELOC was still at 5.9%. He could have just drawn on that line instead and saved a ton on closing costs. Has anyone else caught this before pulling the trigger?

3 comments

verafoster•25d ago

My uncle in Phoenix warned me about the HELOC vs cash-out refi math last fall.

He said the closing costs on the refi would eat up my gains, and after running the numbers for a $75k pull, he was totally right. Anyone else get burned by not calculating the break-even point first?

4 comments

wade_perez•29d ago

My brother in law said a cash out refi is just a fancy way to go deeper into debt

We were talking about home projects over the weekend and I mentioned wanting to pull some equity to fix up our kitchen. He said that, and it kind of stuck with me. On one hand, it's true you're taking on a new, bigger loan. But on the other, if you use the money to add real value to your house, isn't it more like an investment? I'm thinking about a $40k reno to update our 90s layout. For those who've done it, did you feel like you were just borrowing more, or did the math work out for you?

3 comments

patriciasingh•1mo ago

My cash out refi in Phoenix almost fell apart because of a $15,000 appraisal gap

I was all set to pull equity for a kitchen reno, but the appraisal came in way lower than the offer price from my lender, First Federal. Everyone online says to just accept it and move on, but I pushed back. I gathered recent comps from my realtor and wrote a formal appeal letter, which got the value raised by $8,000 after a tense two weeks. Has anyone else had success challenging a low appraisal, or did I just get lucky?

3 comments

rosek44•1mo ago

PSA: My appraisal came in $85k lower than the Zillow estimate I was counting on.

The lender's appraiser said the 'Zestimate' didn't account for the outdated kitchen and single-pane windows, which completely wrecked my cash-out amount for the deck addition.

3 comments

the_thea•1mo ago

My appraisal came back and the number was so wild I had to call the guy

Got my house valued for a cash out refi in January, and the guy said it was worth $425,000. Just got a new one done this week because rates dropped, and the new value is $510,000. The only thing I did in those six months was paint the front door bright red and fix a wobbly fence post. Has anyone else had an appraisal jump like that for basically no reason?

3 comments

the_morgan•1mo ago

Talking to my sister in Phoenix about her cash-out refi made me question my own plan

She pulled $85k to fund a major kitchen remodel, but now she's worried about the higher monthly payment with current rates. Anyone else get cold feet after seeing a friend or family member go through it?

3 comments

jesse_nguyen•1mo ago

Why does everyone think you can just pull out all your equity without a plan?

My neighbor in Phoenix told me he did a cash out refi for $85k last month just to buy a boat, and now he's stressed about the new payment. I mean, I get wanting the cash, but you gotta have a real use for it, right? Has anyone else seen friends do this and then totally regret it?

3 comments

paulmartin•1mo ago

Rant: I was so focused on getting the lowest rate that I missed a $12,000 origination fee on a quote from a lender in Boise.

The moment I saw that fee buried on page 3 of the loan estimate, I realized I'd been comparing just the interest rates for months and ignoring the rest of the paperwork, so has anyone else gotten burned by not looking at the full closing cost breakdown from the start?

3 comments

ivan597•1mo ago

My lender told me my debt-to-income was too high for the rate I wanted

I was trying to pull out $85k for a kitchen reno and thought my credit score was all that mattered. The loan officer said my car payment and student loans pushed my DTI to 48%, which was a red flag for the best rates. I paid off my car early with some savings, got my DTI down to 36%, and locked in a way better deal. Has anyone else had to clean up other debts before their refi went through?

3 comments

paulmartin•1mo ago

Shoutout to the guy who showed me his cash out refi math was off by $40,000

He was looking at his home's market value from a Zestimate he saw six months ago, not a current appraisal. He had based his whole plan to pull out $120,000 on that old number. When the lender's appraiser came out, the value was lower, and his available equity dropped big time. How many people are making moves based on old or wrong home value info?

3 comments

adam_nguyen7•1mo ago

Just pulled $85k out of my house in Denver to pay off my business debt

Did it last month after my accountant showed me the interest rate math. I'm saving over $700 a month in payments now, which is a huge relief. Anyone else use a cash-out refi to consolidate high-interest debt?

3 comments