Cash out refi to a higher APR?
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?
Most Popular Reply
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.