Cash Out REFI : is it worth it?

[Thomas J Mele]

Need some advice! 🤷🏻‍♂️

Here are the numbers.

Purchase price in 2019 was 187k

with an interest rate of 4.75%

Current loan amount has 145k left on it.

Identical unit below me just sold for 215k

If I cash out refi today. Loan amount goes up to 180k

Interest drops to 3.65%

And I get a check free and clear for 30k after closing costs.

Keep in mind I need the money to put towards a new property and start my real estate business full time.

WORTH IT? Or find another solution?

Thanks friends!

[Cody Neumann]

@Thomas J Mele

Looks like it is worth it to me. You get cash out and a lower interest rate. As long as you are still cash flowing and you don’t have a prepayment penalty in case you decide to sell I’d do it.