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The loan officer in Mesa talked me out of a cash out refi and I think he was wrong to
Went into a credit union branch in Mesa last Tuesday to talk about pulling $60k out of my house for a shop build, and the loan officer spent 25 minutes steering me toward a HELOC instead. He kept saying cash out refis are 'expensive money' because the rate hits the whole balance, not just the new chunk. I get the math, I really do. But here's what he skipped past: a HELOC is a variable rate, and I've watched my neighbor's payment on one jump close to $200 a month since 2022. My refi would lock a fixed payment for 30 years and I'd still shave about 4 years off the back end because the new loan is smaller than the old one plus the equity grab. He also acted like closing costs on a refi are some hidden trap, which is funny since the HELOC he pitched had a $500 annual fee after the first year. I walked out without signing anything, but now I'm second guessing myself. For folks who ran the numbers both ways, am I missing something on why the HELOC is supposed to win here?
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