Pro and Cons of refinancing my first house

United States
December 15, 2011 3:53pm CST
I bought my first house almost a year ago and I've done many home improvements. It is a triplex and I'm putting new wood floor and paint throughout and I've fixed a leak it once had. If I refinance and it upraises at $50-$100k more how exactly will this impact my financial situation. I'm hesitant because once I refinance my property tax will go up. Can I create straight liquid or money from a refinance or would I only be gaining equity. I am very new to this and know that something along this line could be advantageous. Please elaborate if this is your field of expertise or if you've done this before. Thanks
1 response
veganbliss
@veganbliss (3895)
• Adelaide, Australia
4 Jan 12
Yes, I have done this before & am in the process of renovating now (nearly finished!). You've really got to do your homework before you start. An appraisal is just an opinion on what an agent thinks they can sell it for. This will change regularly with market fluctuations. It's a common trap for home owners to over-spend on renovations & get stuck when no one will buy their house at the price they expect. I do all the renovations myself & spent a huge amount of time getting it just right, but very little money. Property tax should be the least of your worries - I'd be very happy to pay more tax on an asset that doubles its value about every ten years. Depending on which type of loan you have & how you have organized your affairs, you can cash out immediately, but you pay a higher interest rate for the privilege. Hope this helps & welcome to MyLot.