Equity in house / Do you use it?

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petrisunset
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Equity in house / Do you use it?

Post by petrisunset » Mon Sep 17, 2018 6:04 pm

Just want to solicit some BHs opinions whether or not the equity of the primary residence is used in anyway?
We own a roughly $2M house with only $70k left on the mortgage. I am thinking of reasonable ways to use this big prtion of equity.
Thanks

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Phineas J. Whoopee
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Re: Equity in house / Do you use it?

Post by Phineas J. Whoopee » Mon Sep 17, 2018 6:13 pm

Yes, although mine is an order of magnitude less than yours.

I use mine to manage my monthly housing costs. Money one doesn't have to pay has exactly the same effect on the bottom line as money one takes in, after accounting for income tax.

Paying only costs, but not profit to a landlord, is my dividend on my investment. My case is probably unusual: in less than a year I'll have broken even on cashflow alone. Plus, I'll still own the dwelling and still reap the monthly rewards.

PJW

Thesaints
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Re: Equity in house / Do you use it?

Post by Thesaints » Mon Sep 17, 2018 6:16 pm

You can use your home equity, the question to answer is for what. The interest your bank will demand is a certain loss you will take every year.

montanagirl
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Re: Equity in house / Do you use it?

Post by montanagirl » Mon Sep 17, 2018 6:22 pm

Never touch it. We may need it someday, maybe to get into assisted living. But not now.

Fortunately my DH agrees on this policy.

adamthesmythe
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Re: Equity in house / Do you use it?

Post by adamthesmythe » Mon Sep 17, 2018 10:10 pm

I used the equity in my Northeast house by selling it, and using only a portion to buy in the Southwest.

radiowave
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Re: Equity in house / Do you use it?

Post by radiowave » Mon Sep 17, 2018 10:28 pm

I use my house equity as part of my worksheet for retirement. With the appreciation in value over the past few years, we are estimating how much house we can buy when we retire and have no mortgage for a lower maintenance, age in place home.
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JaneyLH
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Re: Equity in house / Do you use it?

Post by JaneyLH » Mon Sep 17, 2018 10:31 pm

No. No. No.

Nissanzx1
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Re: Equity in house / Do you use it?

Post by Nissanzx1 » Mon Sep 17, 2018 10:39 pm

Nope other than counting it towards my net worth. Wouldn't borrow on my house for anything under the sun short of avoiding bankruptcy.... but since I have no debt that would be an unlikely event ;)

ThePrince
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Re: Equity in house / Do you use it?

Post by ThePrince » Mon Sep 17, 2018 10:40 pm

JaneyLH wrote:
Mon Sep 17, 2018 10:31 pm
No. No. No.
+1

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celia
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Re: Equity in house / Do you use it?

Post by celia » Mon Sep 17, 2018 10:42 pm

If you use some of the equity in your house for something else, then you don't have has much equity any more. To me, that would be like going back in time several years to when you were making mortgage payments. I have no interest in doing that. A paid-off mortgage means my living expenses are now less.

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Watty
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Re: Equity in house / Do you use it?

Post by Watty » Mon Sep 17, 2018 10:56 pm

Equity in house / Do you use it?
A Couple of ways;

1) Having a paid off house allows me to live rent free. This is called "imputed rent".

https://en.wikipedia.org/wiki/Imputed_rent

2) If we ever need long term care the home equity can be used to pay for this either through something like a home equity loan or by selling the house.

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Re: Equity in house / Do you use it?

Post by daveydoo » Tue Sep 18, 2018 12:53 am

petrisunset wrote:
Mon Sep 17, 2018 6:04 pm
We own a roughly $2M house with only $70k left on the mortgage. I am thinking of reasonable ways to use this big prtion of equity.
So like hurry up and pay off the mortgage so you can immediately take out a home equity loan? Hard to re-use spent money. Maybe rent a room out on AirBnb?

You could use it for status. :D Acquaintances like to host reunions in their homes so fools like me Zillow the addresses and go $#@%^&!
"I mean, it's one banana, Michael...what could it cost? Ten dollars?"

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unclescrooge
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Re: Equity in house / Do you use it?

Post by unclescrooge » Tue Sep 18, 2018 1:13 am

After I received a threatening letter from an attorney regarding a dog bite that allegedly occurred on my property, I immediately took out a HELOC.

When attorney's are working on a contingency basis, you want to make sure there are as many liens on a property as possible so it looks like you're leveraged to the hilt and don't have any money. :mrgreen:

So while I haven't used any of the HELOC, the recorded documents show there are 2 mortgage liens on the property.

If I had to, I could use the HELOC as an emergency fund.

ThrustVectoring
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Re: Equity in house / Do you use it?

Post by ThrustVectoring » Tue Sep 18, 2018 5:41 am

Watty wrote:
Mon Sep 17, 2018 10:56 pm
If we ever need long term care the home equity can be used to pay for this either through something like a home equity loan or by selling the house.
If you'd owe capital gains taxes on it, it's better to do the loan and let your heirs get a step up in basis. You can do the same in your taxable equity accounts - instead of selling stock, take out a margin loan against your appreciated assets with deferred capital gains.
Current portfolio: 60% VTI / 40% VXUS

rkhusky
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Re: Equity in house / Do you use it?

Post by rkhusky » Tue Sep 18, 2018 5:55 am

Used some equity to finance an addition. Wife pointed out that we could have withdrawn investments from a taxable account to pay for the addition, so it was equivalent to taking out equity to invest.

Grt2bOutdoors
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Re: Equity in house / Do you use it?

Post by Grt2bOutdoors » Tue Sep 18, 2018 6:06 am

Downsize, then use the cash as you desire.
Unless you have substantial after-tax taxable investments where you are covering the amount of equity taken away in the form of a loan, my advice is to pass. You fail to pay back the loan against your house, they will foreclose on you. So, to answer your question- you can borrow some of the equity, if you do make sure you have a firm plan in place to pay it off in a set amount of time, borrow no more than 50% of equity, nevermind what the bank says you “can” borrow.
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Re: Equity in house / Do you use it?

Post by Grt2bOutdoors » Tue Sep 18, 2018 6:07 am

unclescrooge wrote:
Tue Sep 18, 2018 1:13 am
After I received a threatening letter from an attorney regarding a dog bite that allegedly occurred on my property, I immediately took out a HELOC.

When attorney's are working on a contingency basis, you want to make sure there are as many liens on a property as possible so it looks like you're leveraged to the hilt and don't have any money. :mrgreen:

So while I haven't used any of the HELOC, the recorded documents show there are 2 mortgage liens on the property.

If I had to, I could use the HELOC as an emergency fund.
That’s what homeowners insurance is for.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

spectec
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Re: Equity in house / Do you use it?

Post by spectec » Tue Sep 18, 2018 6:58 am

Keep in mind that under the new tax law the interest on a HELOC is no longer tax deductible, except for any proceeds used to improve the residence.
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tennisplyr
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Re: Equity in house / Do you use it?

Post by tennisplyr » Tue Sep 18, 2018 7:18 am

In the past I have used a HELOC to access my huge home equity for things like my daughter's wedding, car and home repair. If you have hundreds of thousands of dollars sitting in your foundation it's like not having it. I'm in a new home and am going to get a HELOC.
Those who move forward with a happy spirit will find that things always work out.

lostdog
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Re: Equity in house / Do you use it?

Post by lostdog » Tue Sep 18, 2018 7:42 am

Grt2bOutdoors wrote:
Tue Sep 18, 2018 6:07 am
unclescrooge wrote:
Tue Sep 18, 2018 1:13 am
After I received a threatening letter from an attorney regarding a dog bite that allegedly occurred on my property, I immediately took out a HELOC.

When attorney's are working on a contingency basis, you want to make sure there are as many liens on a property as possible so it looks like you're leveraged to the hilt and don't have any money. :mrgreen:

So while I haven't used any of the HELOC, the recorded documents show there are 2 mortgage liens on the property.

If I had to, I could use the HELOC as an emergency fund.
That’s what homeowners insurance is for.
And umbrella Insurance.

J295
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Re: Equity in house / Do you use it?

Post by J295 » Tue Sep 18, 2018 7:55 am

No we do not.

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oldcomputerguy
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Re: Equity in house / Do you use it?

Post by oldcomputerguy » Tue Sep 18, 2018 8:21 am

montanagirl wrote:
Mon Sep 17, 2018 6:22 pm
Never touch it. We may need it someday, maybe to get into assisted living. But not now.

Fortunately my DH agrees on this policy.
+1. Our house is paid off, and is our home. I do not (at least at this point) consider our home equity as a portion of my portfolio, as I have no intention of selling unless and until I’m forced to (if/when we have to move to assisted living somewhere else).

That being said, I do factor it in to my net worth calculations, because it is a material asset. But no plans to use it for anything.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

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peterinjapan
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Re: Equity in house / Do you use it?

Post by peterinjapan » Tue Sep 18, 2018 8:24 am

I use the equity in my two homes...to sleep well at night.

PugetSoundguy
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Re: Equity in house / Do you use it?

Post by PugetSoundguy » Tue Sep 18, 2018 8:31 am

If by using home equity you mean a home equity loan, aren't you really just asking: Do you borrow a bunch of money and agree to give up your house if you can't pay it back?

carolinaman
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Re: Equity in house / Do you use it?

Post by carolinaman » Tue Sep 18, 2018 9:10 am

I have Heloc and have used it multiple times for home improvements and new car purchases. It has an interest rate of prime minus .5%. I am always aggressive in paying off any loans but it is a simple and convenient way to handle these types of cash needs. My caveat is that one must be very disciplined using home equity and must be very confident of their ability to repay in a reasonable time frame.

GAAP
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Re: Equity in house / Do you use it?

Post by GAAP » Tue Sep 18, 2018 9:29 am

Not currently, but when I'm old enough I plan to use a HECM LOC -- not a HELOC.

Equity in the house you live in is meaningless/useless until the house is sold. It's basically a guess at net sale proceeds. It does however tie up large sums that might have other uses.

A HECM is dramatically different from a HELOC -- most notably in that nobody else has a lien on the house. That allows you to make use of equity for things like: paying taxes on Roth conversions, reducing retirement portfolio withdrawals in bad years, emergency funding for unexpected expenses, etc.

michaeljc70
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Re: Equity in house / Do you use it?

Post by michaeljc70 » Tue Sep 18, 2018 9:32 am

I would use it if there was a temporary cash flow issue I needed to overcome. If I needed the money longer term I would sell and downsize. If I was older and really needed the money and didn't want to move, I'd consider a reverse mortgage as a last resort.

Admiral
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Re: Equity in house / Do you use it?

Post by Admiral » Tue Sep 18, 2018 9:35 am

I think that for things like funding a child's education, using home equity in lieu of other types of higher-interest loans is acceptable, and many people do it. Some even do it instead of using taxable investments, either owing to potential capital gains or simply because they want to stay in the markets and don't mind paying some interest on a loan to do so.

Other than that, I would not consider it. I once opened a HELOC intending to fund a kitchen renovation, which cost around $20k. When it came down to it, I just decided to use cash, and I closed the credit line. I just don't like the feeling of having any debt other than my mortgage.

Abusing home equity was at least partially responsible for homeowners being underwater in the Great Recession.

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Sandtrap
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Re: Equity in house / Do you use it?

Post by Sandtrap » Tue Sep 18, 2018 9:36 am

Never touch it.
DW and I consider it a last resort emergency fund after all emergency funds and other funds have been exhausted.
And, even if it came to that, downsizing would be the next option vs incurring debt.
j

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Re: Equity in house / Do you use it?

Post by MotoTrojan » Tue Sep 18, 2018 9:43 am

ThrustVectoring wrote:
Tue Sep 18, 2018 5:41 am
Watty wrote:
Mon Sep 17, 2018 10:56 pm
If we ever need long term care the home equity can be used to pay for this either through something like a home equity loan or by selling the house.
If you'd owe capital gains taxes on it, it's better to do the loan and let your heirs get a step up in basis. You can do the same in your taxable equity accounts - instead of selling stock, take out a margin loan against your appreciated assets with deferred capital gains.
This can’t be stated as simple fact. Depending on loan duration/rate it could easily cost more than paying LTCG.

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Meg77
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Re: Equity in house / Do you use it?

Post by Meg77 » Tue Sep 18, 2018 9:47 am

I'm a private banker, and many of our clients maintain home equity lines of credit. These are often used for things like making quarterly tax estimate payments, paying for new cars/boats/planes outright versus going through the hassle of getting a separate amortizing loan for those purchases, paying for weddings or kids' educations, or making home improvements. I've also seen people draw on a home equity line to buy a small second home, fund capital calls, or make new investments into private equity deals.

Ideally the lines are repaid within a year (with annual bonus payments for example). But having the line there enables you to get quick access to cash versus keeping 6 or 7 figures in cash for when these opportunities/needs arise. It's very helpful to people with volatile income - many of our clients get large quarterly distributions from investments or companies they own, or a substantial portion of their compensation is in the form of annual or quarterly bonuses. Being able to bridge the gap with a line of credit enables them to keep more money invested; the alternative is to keep quite a large cash cushion "just in case" it's needed, which can be a big drag on performance over time.

If you're going to tap the equity for a long term investment, such as for a down payment on a commercial RE investment or an investment property (or even for a "toy" like a yacht or aircraft), it can still be cheaper and easier to use home equity as collateral than get a new loan for that purpose. But in that case I'd get a home equity term note with a fixed rate and an appropriate amortization.
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unclescrooge
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Re: Equity in house / Do you use it?

Post by unclescrooge » Tue Sep 18, 2018 9:58 am

Grt2bOutdoors wrote:
Tue Sep 18, 2018 6:07 am
unclescrooge wrote:
Tue Sep 18, 2018 1:13 am
After I received a threatening letter from an attorney regarding a dog bite that allegedly occurred on my property, I immediately took out a HELOC.

When attorney's are working on a contingency basis, you want to make sure there are as many liens on a property as possible so it looks like you're leveraged to the hilt and don't have any money. :mrgreen:

So while I haven't used any of the HELOC, the recorded documents show there are 2 mortgage liens on the property.

If I had to, I could use the HELOC as an emergency fund.
That’s what homeowners insurance is for.
True, but I'm pretty sure paying out frivolous lawsuits raises rates for everyone.

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White Coat Investor
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Re: Equity in house / Do you use it?

Post by White Coat Investor » Tue Sep 18, 2018 9:58 am

petrisunset wrote:
Mon Sep 17, 2018 6:04 pm
Just want to solicit some BHs opinions whether or not the equity of the primary residence is used in anyway?
We own a roughly $2M house with only $70k left on the mortgage. I am thinking of reasonable ways to use this big prtion of equity.
Thanks
Yes, I use mine to eliminate the need to pay interest on a mortgage and to improve my cash flow.

What you're asking is "Should I borrow against my home in order to invest or spend?" The answer to that is probably no, but without knowing of your need to take risk to meet your goals it's hard to say.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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White Coat Investor
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Re: Equity in house / Do you use it?

Post by White Coat Investor » Tue Sep 18, 2018 10:00 am

unclescrooge wrote:
Tue Sep 18, 2018 1:13 am
After I received a threatening letter from an attorney regarding a dog bite that allegedly occurred on my property, I immediately took out a HELOC.

When attorney's are working on a contingency basis, you want to make sure there are as many liens on a property as possible so it looks like you're leveraged to the hilt and don't have any money. :mrgreen:

So while I haven't used any of the HELOC, the recorded documents show there are 2 mortgage liens on the property.

If I had to, I could use the HELOC as an emergency fund.
Why didn't you run out and buy an umbrella policy instead? It seems like a much better asset protection strategy than attempting to convince an attorney you're poor when you're not.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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CaliJim
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Re: Equity in house / Do you use it?

Post by CaliJim » Tue Sep 18, 2018 10:06 am

Bogleheads do not borrow money to use for investment. Bogleheads buy bonds and other fixed income investments to control (not amplify) risk.

Investing with borrowed money is called "leverage". Using leverage amplifies both gains and LOSSES.

Unwise use of leverage can turn an otherwise small loss into BANKRUPTCY.
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Admiral
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Re: Equity in house / Do you use it?

Post by Admiral » Tue Sep 18, 2018 10:37 am

Meg77 wrote:
Tue Sep 18, 2018 9:47 am
I'm a private banker, and many of our clients maintain home equity lines of credit. These are often used for things like making quarterly tax estimate payments, paying for new cars/boats/planes outright versus going through the hassle of getting a separate amortizing loan for those purchases, paying for weddings or kids' educations, or making home improvements. I've also seen people draw on a home equity line to buy a small second home, fund capital calls, or make new investments into private equity deals.

Ideally the lines are repaid within a year (with annual bonus payments for example). But having the line there enables you to get quick access to cash versus keeping 6 or 7 figures in cash for when these opportunities/needs arise. It's very helpful to people with volatile income - many of our clients get large quarterly distributions from investments or companies they own, or a substantial portion of their compensation is in the form of annual or quarterly bonuses. Being able to bridge the gap with a line of credit enables them to keep more money invested; the alternative is to keep quite a large cash cushion "just in case" it's needed, which can be a big drag on performance over time.

If you're going to tap the equity for a long term investment, such as for a down payment on a commercial RE investment or an investment property (or even for a "toy" like a yacht or aircraft), it can still be cheaper and easier to use home equity as collateral than get a new loan for that purpose. But in that case I'd get a home equity term note with a fixed rate and an appropriate amortization.
I'm not so sure those who use private bankers (i.e. VHNW individuals) should be used as a leading example of what the typical Boglehead should or could do. (Of course, the OP has a $2m home so may in fact fall into that category.)

But those types of individuals are the exception, not the rule. Most people are paid 12 or 26 or 52 times per year.

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Re: Equity in house / Do you use it?

Post by andrew99999 » Tue Sep 18, 2018 11:37 am

petrisunset wrote:
Mon Sep 17, 2018 6:04 pm
Just want to solicit some BHs opinions whether or not the equity of the primary residence is used in anyway?
We own a roughly $2M house with only $70k left on the mortgage. I am thinking of reasonable ways to use this big prtion of equity.
Thanks
I have been thinking about this also.
As I understand it, bonds serve 2 purposes:
1. in drawdown during a correction you can avoid drawing down on your equities
2. so you don't freak out by losing so much in a correction

My thought is that having a HELOC "available" to use, but avoided unless it is actually for a specific use may help quite a lot.

Wouldn't having a HELOC available help you with the first point? If you can get say 10 years of living expenses in a HELOC, wouldn't this allow you to be 100% invested in growth assets without the risk of needing to drawdown on equities when they are down?

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Re: Equity in house / Do you use it?

Post by michaeljc70 » Tue Sep 18, 2018 11:41 am

Getting a HELOC while retired may not be as easy as people think. You would have to show sufficient income to pay back the loan. If you haven't been taking RMDs, money out of tax deferred accounts that counts as income and/or get sufficient pension/social security you may not qualify. Those are income based loans and NW plays little in to them.

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Re: Equity in house / Do you use it?

Post by NYC_Guy » Tue Sep 18, 2018 12:07 pm

CaliJim wrote:
Tue Sep 18, 2018 10:06 am
Bogleheads do not borrow money to use for investment. Bogleheads buy bonds and other fixed income investments to control (not amplify) risk.

Investing with borrowed money is called "leverage". Using leverage amplifies both gains and LOSSES.

Unwise use of leverage can turn an otherwise small loss into BANKRUPTCY.
Maybe that’s your definition of a Boglehead. Carrying a reasonably priced mortgage at a reasonable LTV level can be a very good idea for a Boglehead that is early in the accumulation phase. If I were still in my 30s, I would be keeping a mortgage at ~50% LTV and be 100% in low fee, passive equity funds.

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Re: Equity in house / Do you use it?

Post by Dottie57 » Tue Sep 18, 2018 12:12 pm

I don’t use home equity. No need at this time.

When I sell, I will use equity then.

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Re: Equity in house / Do you use it?

Post by texasdiver » Tue Sep 18, 2018 12:19 pm

The whole "home equity" label just obscures the fact that you are simply borrowing money and using your house as collateral to get a lower interest rate.

"Untapped home equity?" How is this any different than "untapped credit line" on your credit card? If I added up all the different credit lines on the credit cards that my wife and I hold the total would likely be well over $100,000. So do we have $100,000 of untapped credit that is begging to be used? Sure, the interest rate is higher, but then we aren't putting our house on the line either. It's all just money that someone is willing to lend us.

If you NEED to borrow money for some specific purpose then seeking out the best interest rate and loan terms is prudent. That may or may not be a HELOC. When we recently bought a car the interest rate through our local credit union was lower than an HELOC so we just got a traditional car loan.

But looking for excuses to borrow money that you don't need just because a bank is willing to lend you money seems foolhardy.

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greg24
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Re: Equity in house / Do you use it?

Post by greg24 » Tue Sep 18, 2018 12:20 pm

Do you do anything with the equity you've built up in mutual funds? Do you take a margin loan?

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Re: Equity in house / Do you use it?

Post by celia » Tue Sep 18, 2018 12:22 pm

Admiral wrote:
Tue Sep 18, 2018 9:35 am
I think that for things like funding a child's education, using home equity in lieu of other types of higher-interest loans is acceptable, and many people do it. Some even do it instead of using taxable investments, either owing to potential capital gains or simply because they want to stay in the markets and don't mind paying some interest on a loan to do so.
If your family is eligible for financial aid, this is a poor use of money. The financial aid formulas don't count home equity or retirement accounts, but they do count all your assets in taxable accounts. So, to be eligible for more financial aid, after maxing the retirement accounts, it is better to put your extra money (for savings) into the house, via home improvements or paying down the mortgage. This is just the opposite of taking a HELOC.

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Re: Equity in house / Do you use it?

Post by michaeljc70 » Tue Sep 18, 2018 12:25 pm

greg24 wrote:
Tue Sep 18, 2018 12:20 pm
Do you do anything with the equity you've built up in mutual funds? Do you take a margin loan?
You just withdraw the money from a fund to spend it. Not as easy to do with a home. Not the same thing IMO.

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Re: Equity in house / Do you use it?

Post by Sasquatch » Tue Sep 18, 2018 12:28 pm

michaeljc70 wrote:
Tue Sep 18, 2018 11:41 am
Getting a HELOC while retired may not be as easy as people think. You would have to show sufficient income to pay back the loan. If you haven't been taking RMDs, money out of tax deferred accounts that counts as income and/or get sufficient pension/social security you may not qualify. Those are income based loans and NW plays little in to them.


+1

I was turned down despite a paid off primary and nearly paid off rental (which is rental fully cash flowing) a 7 figure 401k and a low 800 FICO score. I will take my first distribution from 401k in December and then reapply when I can show income.
Last edited by Sasquatch on Thu Sep 20, 2018 11:51 am, edited 1 time in total.

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Re: Equity in house / Do you use it?

Post by Admiral » Tue Sep 18, 2018 12:36 pm

celia wrote:
Tue Sep 18, 2018 12:22 pm
Admiral wrote:
Tue Sep 18, 2018 9:35 am
I think that for things like funding a child's education, using home equity in lieu of other types of higher-interest loans is acceptable, and many people do it. Some even do it instead of using taxable investments, either owing to potential capital gains or simply because they want to stay in the markets and don't mind paying some interest on a loan to do so.
If your family is eligible for financial aid, this is a poor use of money. The financial aid formulas don't count home equity or retirement accounts, but they do count all your assets in taxable accounts. So, to be eligible for more financial aid, after maxing the retirement accounts, it is better to put your extra money (for savings) into the house, via home improvements or paying down the mortgage. This is just the opposite of taking a HELOC.
So you're advocating saving nothing and pre-paying your mortgage instead? So you can hopefully get some aid and take on debt later? That strikes me as an odd choice. Why not just declare personal bankruptcy? If I have the money, I'd rather pay it and let the aid go to someone who really needs it.


I'd rather save my money in a taxable account and pay for college (or anything else) in cash than make extra mortgage payments in the hopes that I can get a loan (or aid) because I have no savings. Also, I was comparing a home equity loan to loans with higher interest rates.

YMMV.

EDIT to add: FAFSA also looks at income, so even if one has no savings, if one has high income they are going to make a calculation as to how much you can afford to pay.

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Phineas J. Whoopee
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Re: Equity in house / Do you use it?

Post by Phineas J. Whoopee » Tue Sep 18, 2018 1:55 pm

In my neighborhood many homeowners with Home Equity Lines of Credit saw them cancelled, or converted to no more than they had outstanding at the time.

In 2009.

When they needed them.

PJW

KlangFool
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Re: Equity in house / Do you use it?

Post by KlangFool » Tue Sep 18, 2018 2:04 pm

petrisunset wrote:
Mon Sep 17, 2018 6:04 pm
Just want to solicit some BHs opinions whether or not the equity of the primary residence is used in anyway?
We own a roughly $2M house with only $70k left on the mortgage. I am thinking of reasonable ways to use this big prtion of equity.
Thanks
petrisunset,

Sell the house and move to a place next to a beach somewhere.

KlangFool

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sergeant
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Re: Equity in house / Do you use it?

Post by sergeant » Tue Sep 18, 2018 2:04 pm

No. I also have equity in my truck and don't take car title loans.
Lincoln 3 EOW!

fujiters
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Re: Equity in house / Do you use it?

Post by fujiters » Tue Sep 18, 2018 3:14 pm

I don't now, but if there's a big crash I will probably try to do a cash out refinance.
“The purpose of the margin of safety is to render the forecast unnecessary.” -Benjamin Graham

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