Refi and add to savings?
We’re in our mid 60s and planning to refinance our mortgage and taking $30000 equity to pad our savings account and do some home updates and not have to worry about touching our 401K. What are your thoughts? Thanks
Terry Says
It’s a good time to refinance, as long as you have good credit and an income from work. You can take the cash out for any purpose.
And today’s rates are likely th4e lowest you will see in your lifetime! So you get no argument from me — even though “savings” will earn far less than the low interest you pay on your mortgage. There is a value to liquidity.
But if you take on a new mortgage that is larger than your current one, then only the portion used for home improvements remains tax deductible as far as the interest you pay.