those of you who take $ out of house to invest

[cronewitch]

I did it at 6.125 once but now that is too high. I can borrow at 2.24% but only do about half my credit line. I did major borrowing that is now at 3.458% on a first mortgage.

I would probably stop at about 5%. So far it has worked out great for me, mortgages are deductible and the gains are long term capital gains or dividends. I haven't had to cash out investments so the income is deferred and if I die will get a stepped up basis so a much better tax deal.

[Deleted]

I've got a credit line at 2.75% and still wouldn't do it. In fact, I think the paperwork I signed said the proceeds can't be used for investing. Not that they'd have any way of finding out.

[2kids10horses]

horatio,

I don't have a mortgage on my house, but I do have a large equity line. I use it when I want to buy a house to fix up and flip.

That way I can make a "cash" offer, and don't have to finance the purchase. I only hold them for 6 months. Getting a mortgage is very expensive because of all the fees the mortgage people charge. I still have to pay the attorney fee and title exam, but avoiding all the mortgage costs saves me 2 to 3%.

That's what I use my equity line for. Working capital.

[Deleted]

I would go up to 5%.

[phil5185]

borrow against the equity of a house and invest that money in the stock market, what is the maximum interest rate you would do that at?

I limit it at 6%.
During the 1980s and 1990s I borrowed 7 1/2% and 7 3/4% capital on 3 of the houses, worked great then when the SP500 was returning 18%/yr for several years running - but no need to take that risk now, loans are cheap.