Cash out refi to sit on cash?

[Tj M.]

Would or have you done a cash out refi at these low rates to just have the money in the bank waiting on a market correction?

[Joe Villeneuve]

No.  Don't get hung up comparing percentages.  They don't mean the same thing to the two things you're comparing...and they don't have the same impact.

My answer to the initial questions is NO. It doesn't matter what the percentages are. I would be paying for money that is doing nothing but costing me more money. I would much rather get it into another REI that incorporated a compounding strategy. This way, I would get multiple uses out of the same money, pay for it only once, and get a compounded return.

Now if I did as you suggested, not only would I be getting no use out of money that I am now paying for, but as it just sits there......I'm also losing that compounded return.

So no,....he77 no!!!