05-04-2008, 05:25 PM
It depends on a lot of things, some things have already been mentioned. Do you have an iron clad stable job? Do you currently have zero credit card debt? Is your home worth more than your mortgage? Have prices in your neighborhood stayed stable or risen during the recent mortgage problems? Do you have good enough credit that you can get a low interest fixed rate loan without a bubble clause that might come due in 2-5 years? Are the estimated maximum loan payments less than 40% of your adjusted after tax income? I could keep going if you are interested...
If your cash flow is good and there is no chance getting under water on your home loan, you can make money investing the money that would be your equity. Generally there is very little that is as safe as home equity and will give you are good a return. It depends a little bit on what your local real estate market is like.
If your cash flow is good and there is no chance getting under water on your home loan, you can make money investing the money that would be your equity. Generally there is very little that is as safe as home equity and will give you are good a return. It depends a little bit on what your local real estate market is like.