ReFI home and cash out then invest?

[ripvanwinkle]

What's you thoughts on this. I owe $80k on my home. It's valued at about $180-200K. While coming back from a road trip at 1am, I ran the radio dial and came across a guy who was saying take the equity on a refi and invest it. Since a cash out refi money is tax free I've been told, it sounded kind of good.

Has anyone ever done this?    

[Gardening Grandma]

Yes, it was done before the last crash. People lost everything. 

[The Virginian]

I'm selling a rental property out right  and investing it in the market - but..... - I would never do that with a Primary residence - Never !

[CCL]

If I were seriously considering that, I would only do it after a big drop in the markets/indexes, 20-30% minimum, then be ready to hold long-term. Like others have said, probably not a good idea for most people, but depends on your situation.

[yogiii]

I'm doing the opposite, I've started sending the money that used to go to taxable to the mortgage. When mortgage is gone, I'll start up taxable again.  I know most people won't agree with me but it will really be nice to be <40 and have a paid off house.

[Ombud]

yogiii, like the philosophy of having multiple supports? Lower overhead and eventually higher investments? When housing dips I'm not personally affected as I'm mortgage free