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Yakk · 08-08-2005, 04:13 PM

You cannot get a guaranteed investment that will return more than a morgage costs, assuming the period and rate flexibility of both are equal. If you could, banks would buy that investment instead of lending you money.

You can use the lower interest rate from the extra equity to make leveraged investing more profitable. But it won't be risk free.

If you want liquidity, get a home equity line of credit (HELOC), and use it in case of emergency. If you have any debts, roll it into the HELOC, which will almost certainly have a lower interest rate, and move your payments on the debts into payments on the HELOC. If done properly, this can make you debt free very quickly.

I am not a professional, so take my advice with a grain of salt.

08-08-2005, 04:13 PM	#6 (permalink)
Yakk Wehret Den Anfängen! Location: Ontario, Canada	You cannot get a guaranteed investment that will return more than a morgage costs, assuming the period and rate flexibility of both are equal. If you could, banks would buy that investment instead of lending you money. You can use the lower interest rate from the extra equity to make leveraged investing more profitable. But it won't be risk free. If you want liquidity, get a home equity line of credit (HELOC), and use it in case of emergency. If you have any debts, roll it into the HELOC, which will almost certainly have a lower interest rate, and move your payments on the debts into payments on the HELOC. If done properly, this can make you debt free very quickly. I am not a professional, so take my advice with a grain of salt. __________________ Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.