What are eveyone's thoughts on doing a cash-out refinance on a primary residence to lock in the current low rates?
Our details:
29 y/o, married, 1 kid. No rentals. ~150k gross combined income. Stable jobs. Low expenses. $600k in retirement accounts, no other investments or properties.
House - $40k and 5 yr left on a 10yr mortgage at 2.95%. We've remodeled extensively and the house is valued at ~$180k now. So, if we did a cash out refinance, we could take out ~$100k and keep a 80/20 LTV ratio to avoid PMI.
I don't need the money for anything. The main incentive would be to lock in the current low rates to put toward rental property downpayment when a deal pops up. It would be conservatively invested in a taxable account in the meantime.