Things to avoid with EQUITY #investing #realestate #shortvideo #shortsvideo

What we don't want to do is take the equity and use it to pay bills off for debt reduction for different things. It just not, it's just not smart to spend that. So try to avoid that at all cost. Refinancing your, your home over and over again and pulling cash out, because there's ramifications in that that you don't even see when you do multiple refinances, especially cash out refinances. What you didn't know is that when you do a cash out refinance, your interest rate is higher versus what's called a rate and term refinance, which is simply you're just refinan the total loan amount and the rate. That's the only reason you're refinancing. Now, if you pull cash out, you're probably typically going to have a higher rate for pulling that cash out. You're going to increase your debt, all the pieces. So let's try to avoid that.