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My accountant in Phoenix talked me out of a cash out refi, and now I'm second guessing everything
I was all set to pull $45k out of my house to pay off credit cards and bump up my emergency fund. My accountant, who I've used for 6 years, told me to slow down. She pointed out that my rate would jump from 3.8% to 6.1%, and my monthly payment would go up by $280. She said the debt felt bad but the refi would just stretch the pain out over 30 years. I mean, I get her logic, but now I'm stuck wondering if I should just do a HELOC instead or maybe wait 2 years for rates to drop. Has anyone else had a pro talk them out of it and did you regret listening?
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parkerh385d ago
That rate jump is brutal... 3.8 to 6.1 is a huge difference, like $280 a month huge. Your accountant sounds like she actually cares and isn't just trying to sell you something. A HELOC might work but those are variable too, so you could get burned if rates keep going up. Honestly waiting 2 years is a gamble, nobody knows where rates will be.
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