quote:
My thought is: take out cash and refinance at a lower rate (have 9 years left but increase to 15... ok since we are 40 and can still pay it off early

Have you checked numbers on this? Typically you want no more than 80/20 to avoid PMI and if you do a cash out refi you pay a higher mortgage rate. Also, changing your mortgage to a 15 year may not lower your payment. Seems like a terrible time to be buying right now in the south. If you are buying one and not selling another I would wait. Market is starting to turn quickly out west and has been bad in NYC for a while, which were leading indicators of what it will look like here soon during the last housing downturn.

Having said all of that, I know people that have done it. They just made the move, regardless of what others said. One made a lot of money, one did not. I was jealous of their entrepreneurial spirit and willingness to take risks. They eventually became jealous of my free time and freedoms from worry about another house and bothersome tenants.

This post was edited on 5/14/20 at 7:12 am

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Posted by AndyJ

Member since Jul 2008

2765 posts

Posted on 5/14/20 at 7:58 am to go ta hell ole miss

Thanks a bunch. I do t want to buy one today, but I’d I started the process of a refinance, I imagine that would be a couple of months. Then Searching for properties would be a few months. I figure by then I could actually start to see some trends in the real estate market.

I guess what I was trying to ask was... since rentals have higher interest rates, but my home refinance would be down to 2.75%, wouldn’t it be better to use more equity from my house (at the lower interest rate) for a down payment so that I’d be borrowing less at a higher interest rate (for the rental)?

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