ripvanwinkle
Well-Known Member
All that is necessary for evil to succeed is that good men do nothing - Edmund Burke 1729 -1797
Joined: Jan 9, 2011 22:36:42 GMT -5
Posts: 1,342
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Post by ripvanwinkle on Aug 1, 2016 22:09:38 GMT -5
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?
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Gardening Grandma
Senior Associate
Joined: Dec 20, 2010 13:39:46 GMT -5
Posts: 17,962
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Post by Gardening Grandma on Aug 1, 2016 22:30:02 GMT -5
Yes, it was done before the last crash. People lost everything.
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The Virginian
Senior Member
"Formal education makes you a living, self education makes you a fortune."
Joined: Dec 20, 2010 18:05:58 GMT -5
Posts: 3,629
Today's Mood: Cautiously Optimistic
Location: Somewhere between Virginia & Florida !
Favorite Drink: Something Wet & Cold
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Post by The Virginian on Aug 2, 2016 17:28:30 GMT -5
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 !
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CCL
Junior Associate
Joined: Jan 4, 2011 19:34:47 GMT -5
Posts: 7,586
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Post by CCL on Aug 2, 2016 21:31:20 GMT -5
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.
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yogiii
Junior Associate
Joined: Dec 20, 2010 19:38:00 GMT -5
Posts: 5,377
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Post by yogiii on Aug 3, 2016 6:41:56 GMT -5
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.
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Ombud
Junior Associate
Joined: Jan 14, 2013 23:21:04 GMT -5
Posts: 7,592
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Post by Ombud on Aug 3, 2016 10:57:02 GMT -5
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
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