Quote:
Originally Posted by RabidRat
I wonder if anyone takes out a line of credit against their home equity and uses that to fuel purchase of ETFs. The S&P500 is on avg going to yield more than the HELOC rate isn't it?  |
Many people do. You can lock in a 5-year chunk at 5% +/- these days, that's not a huge hurdle rate to have to better with your investments.
With that said, there is also some middle ground which is simply to not speed up your mortgage payments and take your full amortization. No lump sums, no accelerated payments. Instead, every surplus dollar goes into a portfolio. That's what my wife and I do - there's an academic argument to take MORE debt, but there's a "sleeping at night" factor that is different for everybody. For us, it's at having a 30-year mortgage we will take all of 30 years to pay, intentionally.
-Mark