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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?
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morgan_butler7d ago
That math depends on the rate they got. A cash-out refi from a few years ago at 3% is a totally different beast than one at 7% today.
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abby1897d ago
The idea of a 7% cash-out refi makes my stomach hurt. My cousin did one at 2.75% back in 2021 and his payment barely moved. At today's rates you're basically taking on a whole new mortgage payment just to get some cash. That's a brutal way to access your equity.
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