Money Monday: Cash Out Refinance

I’m having a major freak out because I’m in the early stages of getting my place ready to sell. The tenants have been given notice. I sold one of my beautiful velvet couches last weekend. Stagers and painters will be submitting bids soon. I was mentally prepared to make this the focus of my life.

Now the curve ball.

The reason I moved forward with selling my place is because I couldn’t refinance it. The last appraisal came in at an abominable $400,000 even though I paid $455,000 for it. I tried again last October with a different broker who guaranteed no fees and no appraisal cost. After the appraisal, I never heard back from the guy. I called, I emailed, nada. I figured the appraisal must have sucked again.

But miraculously, the company called me yesterday asking for a status since the broker I had been working with left the company. That’s why I hadn’t ever heard back. Looks like my appraisal came in at $500,000. It dawned on me (after clearing my mind and meditating for 10 minutes last night) that I should go for a cash-out refinance which will pretty much solve all my problems.

1. I won’t have to sell.

2. I can extract some of the equity in my home and use that for my next down payment.

3. I can reduce the rate and shorten the term to 20 years.

4. In 20 years, this is going to finance our retirement!