need strategy confirmation
If I could refinance my home and pull out 40K cash and save 450 dollars a month in mortgage, would that be worth it to take advantage of lower home prices.
The flip side is I'm 5 years from paying off my home, my wife and I were really looking foward to saving the 1200 we pay now 5 years from now, but I was just going to invest that in mutual funds. Now I am sour on the market and am starting to think drywall is where my money is safer.
I floated the idea to her today and laid out the arguement that it was better to never own a home as we can't spend the equity. And that we will probably rent the home were in anyway. I am looking at buying 2 rentals with the equity and renting this one for a total of 3. Is this a valid course of action? Will a bank even do an equity loan where you could use it for investment homes?