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Financial Planning / Paying For College


Subject:  Re: Paying for College and Aid Date:  2/25/2013  8:50 AM
Author:  2gifts Number:  8023 of 8342

I want to refinance and take $70K out for each of them before the rates go up which i think they will by next year.

I've never been a fan of using my house to pay for other things, and would not be inclined to borrow from the house to pay for college. If you do decide to do that, however, I would not refinance now to have money sitting there for several years on which I am paying interest. I'd prefer doing a HELOC where I could take out the money as I needed it, and potentially need to borrow less and pay less interest. As this is needed in the short-term, I would not be inclined to be paying for it over the full course of the mortgage, and would prefer to be able to retire this borrowing as soon as possible.

Also, would your kids be borrowing as well? It seems to me that if loans are needed, then they should be paying at least part of that since it is for their education.

Should i put this money in a short term investment account or park it in a 529 for each of them locking in current tuiti