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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?
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james_ramirez4d ago
Man, I feel you on this... it's tough when family throws out something like that and it just hangs over your head. Your BIL isn't totally wrong but Jesse makes a solid point too, if you're smart about what you spend on it can work out.
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jesse_nguyen29d ago
Used to agree with your BIL until we redid our bathroom. The appraisal came back 50k over what we owed after the work. It's debt, but it's debt on an asset that's now worth more. Just don't overspend on stuff that won't add value back.
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