Refinancing properties in a rising interest rate market

[Leanne Hunt]

I often read that it is a good idea to refinance a property as soon as possible to release money for another deal. This makes sense when the new loan can be obtained at the same or a lower interest rate, but when interest rates have gone up it is surely inadvisable?  Rates are on the rise where I live, and although I have seen huge appreciation in my properties over the last 10 years, meaning I could refinance to release a lot of money, I would be repaying the loan at a much higher rate.  This makes it risky in terms of vacancies because I would have to meet higher mortgage payments without income, and I don't want to have to do that.  Any thoughts from experienced investors who have faced this challenge?

[Elizabeth Colegrove]

It comes down to your goals and position in life! I would only refinance them if the mortgage rate you are paying on your debt is significantly lower than what you can make on your investments. 

We love leverage, because right now debt is at an all time low. That being said, when we get closer to our early retirement date. The security of having paid off houses, and secure income is paramount to funding our dreams.

So while making money is important, it is equally important to make sure you preserve and fund your goals! :)