Seeing advertisements for cash-out refinances

If your home is worth more than your current mortgage value, you can refinance to a new mortgage for the whole value of your home and get the remainder in cash (and then owe it all back of course!)

These shady banks will go to any length to try to keep people from paying off their whole mortgages and keep them in debt forever.

For shame!!! For shame!!!

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HootyTheNightOwl

Wouldn't that be your own fault as the consumer, though???

We are encouraged to look at what it is we are signing up for so that we don't get a nasty surprise down the line.

SlippingAway

Cash out refinances have been around for decades. In some instances they can help people do remodels on their homes they otherwise couldn't do but yes sometimes it's not a good thing they just blow the money

empanadas · 31-35, M

Yeah the more I learn about real estate investing, the more I hate banks and realtors. Bunch of vampires

SW-User

@empanadas Yep. But debt is needed to make the world go round because money isn’t really physical, it’s numbers in computers, so we use debt to create more than we actually have.
Key in profit for real estate investing is debt that others pay off, and not you.

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