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Serious question, why is everyone so quick to refi for a HELOC instead of a fixed cash out?
I spent 6 months in Boise watching friends pull equity for everything from truck payments to kitchen remodels, and they all swore by variable HELOCs because the rate looked lower on paper. Then my neighbor got a 2 point jump in 3 months and his payment ballooned by $400 almost overnight. I get that flexibility is nice, but I'd rather lock in a fixed 30 year cash out refi at 6.8% than gamble on a rate that moves like the stock market. Has anyone else been burned by the HELOC pitch after doing the math on the worst case scenario?
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