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I don't think it's that simple. Maybe if someone has lots and lots of investment homes, they may think that way, but someone owning a single home shouldn't be e
by CincinnatiMan 4y ago
I don't think it's that simple. Maybe if someone has lots and lots of investment homes, they may think that way, but someone owning a single home shouldn't be excited about its price inflating--it's not like you can sell it and reap the profits, because you'll just be buying another similarly inflated house.
- adam_arthur 4y agoYou can do a cash out refi and invest into other higher yielding cashflowing assets. People do this all the time for e.g. renovations, additions etc
- CincinnatiMan 4y agoYou eventually have to pay that back though, right? So the benefit is fleeting.
- adam_arthur 4y agoIf you cash out refi at 3%, and invest into 6% yielding asset, then you are permanently making 3% extra return on that money. (of course there's risk etc)