You don't have to refinance your whole mortgage. Keep your low-rate first loan and get a second-position loan instead to tap your equity. The catch: second loans cost more because they're riskier for lenders, and the speaker has seen them cause real losses.
You're not necessarily refinancing the whole loan. For example, one decision that people are going to have to make coming up if you've got those low rates and you know, don't feel bad if you didn't catch the 3% train, I didn't either. Okay. But if you caught rates, you know at 4% or 4.5%, that's still incredible. It's totally incredible. Right. And so the decision you're going to have to make in the future when you've got a bunch of equity in those properties and you want to employ refi till you die, you might just keep that first loan in place and simply get a second loan. Right? Second position loan to pull that cash out. Now you're going to have to pay a higher rate for that second loan because it's less secure for the lender. And when I've been a lender, by the way, the loans I've been burned on are when I'm in second position.
