Newsflash: [US] Mother trying to get a cash out refi on her recently paid off home (I paid it off) – how do I convince her this is not a good idea?

Basically, my father died and she’s on a fixed income and since she raised me after all I decided to pay off the remainder of their mortgage if she put the home in a trust with me as the beneficiary.The credit union she insists on going to is offering her over 5%, that much I know.Now, they want me to get the trust redone and taken out before they can proceed she already had the home appraised and it’s been approved for the amount she wants to pull and will be going to the underwriter next week if I don’t step in.Comps in this area are valued around 20-30 grand more than the house appraised for and she wants to take well over 60 out.To me, this seems like something I need to talk her out of but I’m not real estate saavy enough to get across my point without sounding like I just want to protect her from a bad decision – which I honestly think this is.I mean, I guess in the end it’s her choice but financially speaking from a real estate investment PoV this is unwise – or am I the one wrong?As I mentioned, just based off comps in the area and the amount she wants to put into it I don’t think she’ll get close to what she wants out of it back if she does sell and quite frankly I don’t want it to be taken out of the trust after I’ve JUST paid off the remainder of the home.Thanks in advance.

Read more at https://www.reddit.com/r/RealEstate/comments/7616d4/us_mother_trying_to_get_a_cash_out_refi_on_her/?utm_source=ifttt

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