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Updated over 9 years ago on . Most recent reply

Is it too risky to cash out from my primary residence to invest
Hi
My primary house is now worth 1.1 million. I have $225,000 loan left. I am thinking of doing refi to cash out the equity. I talked to my loan agent, I can cash out 825,000. After pay down the previous loan, I will have $600,000 left. I am planning to use this money to purchase several investment property. I want to cash out now, since I feel that my house in sillion valley is very high now. I am afraid that the house price is going to go down, and also the rate is pretty low now. But my other concern is that if I don't find property to buy immediately, I end up paying a lot of interests. My current loan is 15 years fixed with 2.85 rate for $225,000. So the interest is pretty low. I do have $200,000 reserve in cash in case things go south. Shall I do the refi? Is it too risky?
Thanks
Linda