Vent: People keep using cash out refi for credit cards and calling it smart

I work at a branch in Austin and last month I had three people in one week come in wanting to refi $60k out of their house just to pay off credit cards. They all thought it was a great idea because the rate was lower but nobody talked about closing costs or the fact they were turning unsecured debt into secured debt. One guy had already done it twice in five years. Have any of you seen people treat their house like a credit card and regret it later?

2 comments

2 Comments

jamienguyen1mo ago

Sure. Meet the guy whose wife left him right after they pulled that cash out.

craig.tessa1mo ago

Turning unsecured debt into secured debt is like burning your furniture for warmth.