11-02-2021, 02:49 PM
(11-02-2021, 02:08 PM)fenders53 Wrote: I can't even imagine #6. The small piece of my world that is risk free is my paid off home. If I want to gamble I will ask my broker for margin. Sounds like a Reddit kid YOLA plan. This will fuel our next crash. At the risk of being impolite it's an idiotic strategy that will have a high price eventually.
You are entitled to your opinion but it can be absolutely the right move depending upon a person's situation. It was for me this past March. I, however, wasn't even close to paid off. I went from 27 years of mortgage remaining back to 30, and my rate lowered in the process.
Ric Edelman wrote about this in his book "The Truth About Money". He advises people to always carry a mortgage. I probably wouldn't recommend a cash-out refinance if the rate is higher.