Paying off Mortgage with HELOC

This is pretty much my thoughts.

 

Over 30 years? I don't think so.

 

My wife's Ira was up 45 percent last year

 

Think of it as leveraging your return.

 

So how much have you borrowed against your home to invest?

 

That's all I've got too

 

Do you recommend traditional or Roth?

 

none, but I think it as forced savings (and an emergency asset) to a degree so i'm not as aggressive as I could be. also I'm about to buy out my partner and want to use some home equity for that.

 

if you think your tax rate is going to be higher in retirement than now than roth. otherwise IRA. though a roth in a way is forced savings since you are paying the tax now.

 

if you have zero debt AND have a legit, solid emergency cash fund .... (and I'd throw in "if you're not married and have no kids"... read: have very limited risky factors) .... then maybe it'd be worth looking into.

But again, if you have all those variables in play, it feels like it's a wash ... whether you just pay more against the mortgage or use the HELOC... either approach, used aggressively, could pay off the mortgage around the same time, I think.

.. lemme go back and read that article.

 

the heloc looks risky to me since you are hoping interest rates stay low since all heloc's are variable rate. i'm not sure the spread is worth the risk personally.

 

that's what i'm thinking as well.

 

I went down to a 15 about 8 months ago and love the fact that, worst case, I'll have no house payment before my son learns how to drive.

 

We did the same a couple years back and also love it, but the tax hit has been unpleasant.

 

This is smart advice. But in today's environment of employment I lean towards paying off while I know I have a job rather than possibly losing on the house when selling or other crap that can happen.

 

This.

 

Good call. Home equity loans have better rates than commercial loans.

 

We are on a 30, but we're tracking to pay it off before the kids are in middle school.

 

if you save the difference and invest it you'd have a much easier available emergency fund than home equity.

 

This all day.