Is it bad for me to refinance my condo to put money into my house

Question

i have 40000 dollars in equity and wanna take 10000 to put into the house- like a wood stove etc

Answer 1

are you sure you have 40,000 equity? have you had the condo appraised recently? if not - you might have zero or negative equity

Answer 2

The only danger is that the $10,000 loan could cost you your condo if you can't make the payment.  A credit card charge of $10,000 could not cost you the condo.  /

Answer 3

On the whole, I’m opposed to treating a home like a bank. The risks include

-not being able to keep up with increased payments on a larger loan

-paying your loan for a longer period. Ex. You have 28 yrs left on a 30 yr mortgage. Refi with another 30 yr, and you’ve added two years of payments

-fees can make this a costly move. Ex. closing costs on the loan, prepayment penalties (if any), etc.

-not having enough equity when you suddenly need to sell (this is where many people who have refi’ed get into trouble)

If that remaining $30K in equity leaves you with enough of a cushion that if you had to sell tomorrow you could do so without having to come up with cash to close the deal, and if the improvements you make will add more than $10K in value to your property – I mean that a real estate agent or appraiser literally says you could sell the home with improvements for at least $10K more than without – it might be a worthwhile investment