Question by Aaron: Would Dave Ramsey approve of refinancing my mortgage?
I owe about 20% of the value on an investment property. Should I refinance the house to get equity out and pay off everything I owe and be debt free other than my primary residence mortgage and this investment property mortgage? Its pretty tempting to only have two house payments and attack them aggressively. FYI – I have a good history of keeping the house rented for well above what the mortgage payment is.
Only Dave Ramsey listeners/smart financial debt free people respond please.
Best answer:
Answer by the d
dave ramsey would say no!!!!
What do you think? Answer below!
No he would not.
he would not say to do it but I say yes as the interest paid can be taken to your tax returns and stop any revolving charges. That is where I disagree with Dave. It also gives you a beginning and an end to the debt. The one thing Dave doesn’t say is taking just a $ 2000 credit card at 18% interest and making only minimal monthly payments takes 33 years to pay off
Only your appraisal will tell you.
I do not think he would approve of you offering up your home as collateral when you do not have to. That is a bad trade off.
If your rental has good occupancy it will be paid off soon. be patient. do not offer up your home as collateral so easily.
He would say no. Moving money is not changing your behavior. Plus the cost of refinance would be expensive and that money could instead be used to pay down the other debt. He would say good job on getting the investment property down but now concentrate on your lowest debt and knock it out.
Set up your debts smallest to largest and start the attack. Then build your emergency fund then invest and then attack your two mortgages.
Keep listening to Dave and follow his advice.