About 2 years ago I bought my first home and decided to go with a 10 years fixed 3.125%, $205K loan. Now with the reason of wanting to pay way less monthly and to not have all my assets tied up to the house, I want to do a cash out refinance. Lucky for me, that rate is still low and the housing market has been up recently.
I just asked a bank today and they gave me a quote of 30 years fixed 3.875%, $2,400 closing cost - $800 credit, + $52K cash out (with my estimate of the home’s value).
The reason I want to do this is to have more of my money putting in mutual funds, as this will more diversified my portfolio as I’m feeling I’m very house poor. I put most of my money in the house.
Is there any pros and cons with this? Should I pull the trigger and do it before rates go up again?