Quote:
Originally Posted by sweeps
Well, there is a difference.
When the question comes up... Should I pay down my mortgage or should I invest in stocks? One can infer that the person has cash on hand NOW to make that choice.
If someone is asking... Should I take a home equity loan so I can invest in stocks? The inferrence is that the person does not have available cash now. He's buying on the margin. And while I think the strategy will win a majority of the time, when you lose you lose BIG. That's why I'm not a fan.
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Yes, but my point is if you take on a bigger mortgage from the getgo, then you have more cash on hand.
SO what if you take a small mortgage and change your mind later? Wish you had invested more instead? In a lot of cases I Really see little difference.
ETA: I agree on not gambling with money against my home, but I would hardly see an investment like a ROTH, at my age (with 40+ years to grow) as a gamble. Something more what I Was thinking of why I would borrow.