By Zach Wichter
From Bankrate.com
Economic uncertainty abounds right now as inflation surges and the interest rates on all kinds of financial products rise.
Even so, homeowners may find that tapping their home equity through a cash-out refinance is a financially sound decision, despite the fact that doing so is costlier than it would have been a year ago—or even two months ago.
Here’s why a cash-out refi can still make sense, even in this economy.
What’s Going On with Mortgage Refinance Rates
It’s no secret that mortgage rates have been rising rapidly. At the beginning of 2022, the average interest on a 30-year fixed mortgage for a purchase was below 3.5 percent. Now, less than six months later, that average has shot up about two full percentage points, hovering around 5.5 percent. While refinance rates are a bit lower than those purchase rates, they’ve followed a similar rising trend….