8
My brother-in-law called my cash out refi plan a 'glorified credit card' and it stopped me cold.
We were at a family cookout in Akron last Sunday, and I mentioned I was looking at pulling $45,000 in equity to redo our kitchen. He just looked at me and said, "So you're swapping your cheap mortgage debt for a bigger, more expensive loan? Sounds like a fancy credit card with a 30-year payoff." I'd only ever thought about the cash coming in, not the long-term cost shift. It made me pause my whole application to run the numbers again. Has anyone else had a simple comment completely reframe how they looked at their refi?
3 comments
Log in to join the discussion
Log In3 Comments
bailey.terry1mo ago
Run the numbers, your brother-in-law's right.
2
adam_nguyen71mo ago
That "fancy credit card" line hits hard because it's true for so many stuff we buy now. We just see the monthly payment, not the real price.
2
ellis.susan24d ago
Actually monthly payments make big purchases possible for normal people. Without financing most folks could never buy a car or a house. The total price matters less if you can afford the monthly hit.
8