Honestly, can you really be that perplexed in today’s market if you are thinking about refinancing?
I’ve actually noticed that mortgage interest rates are very favorable, so assuming you have home equity then by all means it can make sense.
What you actually do with that home equity is where it get’s important.
My financial advisor actually convinced me to cash out my 401K and put it to work for me.
His argument was that if I wait til 59 1/2 to begin pulling cash you, tax brackets will probably be higher and I will spend 1/3rd of my yearly income on taxes.
However if I put the retirement funds in tax favored investment the income will not be taxable in the future which means I’ll have more of it.
It’s a common misconception to think that all this pre tax savings is the golden egg. No one ever thinks about what tax bracket they will be in at retirement.
Interesting concept.
