Yes really. I'd rather have $100k in liquid investments to pay a 30 year mortgage (that could last many years) on than have $100k less principal.
I DON'T HAVE PAYMENTS. There is no principle because their is no debt.
I lived thought 99 and 2008. If shtf you won't have 100k anymore and the bank will still want their money for the mortgage payment. Let me know how that works out for you. So not only are you putting the money in the market at risk you'll be putting any equity you have build up in your home at risk also.
HELOCs are callable - not recommending to fuck with that, especially during a recession
And this is different from a home loan where payments get missed how? If it gets called I would pay it off with my retirement funds which isn't much different than what I would be doing anyways if I had the money invested in a taxable account. Not to mention I doubt I'll ever be in debt again (minus my good debt). I can't think of situation where I would ever even get a HELOC anyways.
Agreed. I wouldn't borrow to invest in securities though (unless of course using a margin account for a very short term, like waiting for a trade to settle)
Do you and I have different views on margin because if you aren't paying on your house to invest you'll be basically buying using your house as margin. I can't even begin to understand why using margin gets downvoted here but not paying on your house is ok.
This is stupid, you can't consider your house a bond position.
Sure I can. I took a 3.8% return for the next 30 years or so (or until I move at which point I'd relock at whatever the new rates are).
Until you run out of money and your house is taken from you because you can't get a HELOC (or it's called in) and you have no cash and you lose all your shit.
I think you underestimate government aid. The home is not considered an asset for SNAP. Also in what world would I run out of money? You act like I have no other assets. I need to cover property taxes, utilities, and food. I could rent a room out for Christ's sakes if got that bad.
Also we assuming a scenario where I can't find work for 35 years or something?
If things go to shit, you'd still potentially have nothing.
No, I'll still own my house. I'm not sure you understand how owning a home works. Hell they can't even legally shut off heat anymore in winter.
The game is over for me and if I end up homeless it will be the least of my problems.