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Considering a cash out refi on my paid-off house in Phoenix
I've owned my home in Phoenix for about 12 years now and it's completely paid off. I'm thinking about doing a cash out refi to pull out around $80,000 for some major renovations like a new roof and updating the kitchen. Has anyone here done this on a house with no mortgage, and what kind of rates or fees should I expect to see from lenders in Maricopa County?
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wright.taylor20d ago
Oh I used to be totally with you terryallen, I thought anyone touching their paid off house was crazy. But then my buddy did this exact thing on his place in Mesa last year and it completely changed my mind. He pulled out 60k for a new AC and kitchen, his rate was like 6.2% which sounds high but when you think about it, that's still way cheaper than a credit card or personal loan if something major breaks. Plus in Phoenix with how fast values are climbing, that 80k in renovations is probably gonna bump your house value way more than what you're borrowing. Just shop around hard, some lenders will hit you with crazy closing costs if they know you have no mortgage.
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Bad idea man, don't turn free equity into debt.
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