Cash out refi to a higher APR?

[Brandon Wallace]

I'm about a month out from finishing the rehab on the property. (I own a upper/lower. Upper is being rented out for $990/month and my mortgage is $760/month. I plan to live in the lower unit when finished) I have a 2.88% APR which is good! But my question is, would it be a bad move, financially, to do the cash out refi when interest rates are now as high as 7%? Would like to buy another property soon but would need the cash out refi funds to do so. Should I wait for interest rates to go back down?

[Patrick Rhodes]

Brandon,

It sounds like you have an amazing set up going for yourself. Because you need the cash to continue on investing and have the desire to get another property, I would look into a HELOC ( Home Equity Line Of Credit). This would allow you to keep your current mortgage with that killer rate and borrow against the remaining equity in the home. A typical HELOC would allow you to borrow 75-80%. You are only charged interest on the money while you are using it.

I would start by talking to a local bank.

Hope this helps.