My wife & I are in the market for a home as we have nearly outgrown our current one and have been saving up for a down payment.
However, with how crazy things are in the RE market, what we thought would be a large down payment is now not that great. We have thought about doing a cash out refinance of our current place and then use those funds combined with our savings as a way to get us to the 20% down payment. This also would allow us to rent out our current place which was the plan when we bought it years ago and why we have been saving so aggressively.
We've thought about just selling our current home and rolling the equity, but want to hold on to it if possible.
I wanted to get advice from all the CB RE gurus out there who are far more experienced with this than me.
What are some of things to consider or be aware of if we end up doing the refinance?