I have a HUGE amount of equity (over 1 million) in my primary residence. I am in a great position; however, I am not sure what to do and have thought of a few options:
Option 1: Keep home and do nothing; however, I would not be able to realize the equity, but I have home security as I live in a great location.
Option 2: Cash out refinance-Interest rates would be higher than my current 4.25% and refinance calculators show it is not a good option based on what I currently owe and years remaining on loan.
Option 3: Sell house and realize the equity to reinvest. I would rent until I find something to purchase.
Option 4: Keep house, rent it out, but I would need to refinance to extend the term and lower my monthly payments, again, interest rate would increase as would interest I would have to pay longterm.
I am hoping I could receive guidance that will help me make a decision.
Realtor · Providence, RI · Member since 2022 · 404 posts · 262 votes
3y
Instead of refinancing you could open a HELOC to tap into the equity to use to invest into other properties. I am not sure of your goals whether it be more capital or cash flow but the options would be plentiful with $800k at your disposal.