ADU or other investment
My husband and I refinanced our home with a cash out loan for $60,000. Our house was assessed at almost $1,000,000. We currently owe $343,000 on the home. We locked the loan in at a 2.875% interest rate. We live in Bozeman, MT. We did this approximately one year ago, right before the interests rates started to increase.
We have yet to invest this money. Our original plan was to use it to build an ADU on our property (we live next to a large university, hospital and downtown). But, with the increasing rates, we procrastinated and have done nothing. My question now is, does it make any sense to take a loan out to build an ADU with such high interest rates? Would it be better to wait until the interest rates come down again and instead invest the money in areas other than the real estate market?
Any input would be greatly appreciated.