Good Time to REFI Cash Out?
I just spoke with my mortgage broker, as I am considering a cash-out REFI on a Hollywood duplex. While it is tempting to sell high (or cash out REFI) in this market, the new interest rate (high 5's) that would accompany a cash-out REFI is a bit unsettling. My broker reminded me that we've been spoiled with interest rates in the last 8 years. I purchased this property with a 3.75 interest rate 5 years ago. Historically, interest rates have been as high as 18%. So, perhaps the hike from 3.75 to 5.75 is relatively small, if I could capitalize on a 70K Cash out on a property I bought 5 years ago, and re-invest the capital in another asset where the numbers work.
What are your thoughts on cashing out right now (capitalizing on high property prices) vs the high interest rate that comes along with it?