[joeax]

Two years ago someone I know was laid off. After a three-month climb to find a new job, they vowed to put together an emergency fund. After a sudden drop in rates, they took out a small cash-out refinance. Luckily they still have a job, but the fact that they now have that cushion puts their mind at ease.

Lesson learned: take advantage of cheap credit while you can.

[duxup]

That seems like more of a roll of the dice....

If they're capable of paying back that refinance ... probably could have just saved.

I suppose there is a little window of time where it is advantageous if they're laid off again, that seems more like random chance.

[silverreads]

They got cash while it was easy and certain. Accumulating it slowly would be as uncertain as their employment and expenses, and the option of borrowing later when they really need it may not be available. I can see how it might have been a logical choice for them.