Refi'd my condo in Phoenix after 7 years, the appraisal came back way higher than I expected

I finally did a cash out refi on my 2 bed place near Scottsdale Road and it appraised for $85k more than what I bought it for in 2017. Used some of the cash to fix the HVAC and put new floors in, now I'm wondering if I should've pulled more out while rates were still under 7%. Anyone else see big jumps on their appraisals lately?

3 comments

3 Comments

jennifer_mitchell536d ago

Under 7%? Lucky you. I've been watching rates like a hawk and still kicking myself for not locking in last fall. My neighbor just refi'd his place in Mesa and the appraisal came back $60k over what he paid in 2020. He's walking around like he won the lottery. But here's the thing, that cash out money isn't free. You're just borrowing from future value and hoping the market doesn't tank. At least you used it on something that adds actual value instead of blowing it on a boat or crypto.

luna5896d ago

My buddy Dave cashed out $45k on his place in Chandler last year. He used it to redo the whole backyard, concrete, turf, covered patio, the works. Now his HOA is going after him for the wrong shade of gray on the pavers. He's been fighting them for six months and the project is sitting half done. Meanwhile his rate jumped from 3.5 to 6.8. So yeah that cash out money bought him a half finished yard and a headache.

the_jordan6d ago

And the whole "borrowing from future value" thing is exactly what people don't get. Like yeah your house went up but that equity isn't real until you sell. I've seen too many people cash out big thinking they're geniuses and then the market cools and they're underwater on a new kitchen that didn't even add that much resale. Using it on HVAC or actual improvements that make the house function better is smart though, that's money you'd spend anyway. But blowing it on something depreciating is just wild to me, that boat is gonna be worth half what you paid for it in five years tops.