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*Look away Dave Ramsey enthusiasts* -- Buying Bronco with cash out home refinance?

Nickp

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Anyone looked into doing this? Probably not the most financially savvy thing ever... but with how low rates are and how much home prices have gone up I’m kinda considering it tbh. I could basically have my mortgage go up $25 a month and pull out $40k or so with how rates are currently. And at 3.5%ish interest that’s going to be better than any deal on financing the Bronco most likely. Of course I would do this and pay a lot extra on the mortgage to pay it down early. Would just be nice to have lower monthly obligations.
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Headsong

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Anyone looked into doing this? Probably not the most financially savvy thing ever... but with how low rates are and how much home prices have gone up I’m kinda considering it tbh. I could basically have my mortgage go up $25 a month and pull out $40k or so with how rates are currently. And at 3.5%ish interest that’s going to be better than any deal on financing the Bronco most likely.
I'll bet you'll get a better rate from Ford.
 
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Nickp

Nickp

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Garbone

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No, I like Daves methodology.
 
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Nickp

Nickp

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Refinancing your home to buy a car...Is this a real thought?
I mean debt is debt. I’m going to refinance anyways (I have PMI and 4.625% interest rate currently) if I can get rid of both of those things, as well as pull cash out it would be nice to have the Bronco paid in full and have the title in hand. If I ever needed to I can sell it instantly. I like that.
 
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Nickp

Nickp

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That math doesn't sound right..?
Doing a basic mortgage calculator I can pull out $40k and my payment would barely change due to my rate reduction and getting rid of $100 PMI.
I like some of his info but some of it is god awful. Like only doing a 15 year mortgage is terrible advice.
 

Firefly

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Do yourself a favor and calculate the interested paid over the life of the loan. That number should be the only thing you need to talk yourself out of it.
 

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west

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You may even get a better interest rate with an "open" type mortgage. Also look at the cost of registering the new updated mortgage and legal expenses involved. It could make sense as long as you pay it off in time without any penalties.
 
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Nickp

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Do yourself a favor and calculate the interested paid over the life of the loan. That number should be the only thing you need to talk yourself out of it.
Oh yeah it would be absurd. It would be over $60k. But I would just make the “car payment” as an extra principal payment every month. (Or maybe a bit less and use the extra cash flow to max out my Roth)
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