I was hoping to gain some knowledge as to refinancing a home. Would it be better to do a cash out refinance now and hold the equity of my home in case of a market collapse? I’m new to BP and was looking for some guidance. It’s a multi family home and I’m wondering if keeping the cash flow coming in as it is, would be smarter choice and holding a smaller mortgage, or if I would be better to take the equity out now and be ready to buy another property in the event of a recession.
Investor · Las Vegas, NV · Member since 2017 · 321 posts · 524 votes
7y
@William Gantz You can either refinance now when rates are at historical lows or wait and risk not being able to refinance. A common theme from everyone who talks about recessions: money dries up and getting loans becomes more difficult. From what I've been told, I wouldn't expect you to have the ability to refinance if a major recession hits.
Thank you all for your advice, I will look into the necessary steps to do so! I appreciate you taking the time to respond and hope I can be an asset to this forum the way you are.