ben849•1mo ago

Heard a guy at the hardware store say he's pulling all his equity to buy a boat

I was in line at Home Depot yesterday. The guy in front of me was telling his buddy he's doing a cash out refi on his house in Tampa. Said he's taking $85k to buy a fishing boat. His exact words were 'the payment only goes up a couple hundred bucks, it's free money.' That really made me stop. He's turning home equity into a big loan on a thing that loses value fast. The math seems off if you ask me. Has anyone else seen people use their equity for stuff that just costs more money every month?

3 comments

3 Comments

skyler8001mo ago

Used my equity to fix the roof instead.

theahart1mo ago

Wait, you used your home equity just for a roof repair? That's wild. @umaw69 is right, it's not free money at all. I can't believe the math made sense to do that instead of just saving up for it.

umaw691mo ago

Yeah, that "free money" line really got me too (it's like, buddy, that's a loan you gotta pay back). I feel you on the math not adding up at all.