How does refinancing work?

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My parents recently suggested I refinance my home to help with some of my debt, but how does that help/work?

I bought my house in 2020 for roughly 275,000 its current market value is close to 400,000. From my understanding I can use the difference in value to help pay for the loan, but how exactly does that work? And how do I go about it?

In: Economics

9 Answers

Anonymous 0 Comments

Don’t do it unless you have a ton of credit card or other high interest rate debt which is on you.

look at the interest rate you’re paying now and what your payment would be if you bought in 2020. you’re interest rate could easily be double what it is now.

using your home to fund over spending in life is a vicious cycle You need to live within your means and pay down your house. mortgage not increase it.

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