As the others have said, the most prudent and conservative thing todo is to pay down the mortgage.If you want to be just a little aggressive, convert to a line of credit.Pay it down as much as you can, same advice, but keep the borrowing power on standby.If the S&P drops to some insanely low level like 500 later this decade, then borrowing to invest might make lots of sense.It will be hard to do badly with money deployed at wonderful prices.Even so, make sure it's uncallable money.Better to have a high rate fixed mortgage for a decade than to havea low rate line of credit they can call on demand without notice.First rule of leverage: If the loan can be called, the proceeds shouldn't be in stocks.That rules out broker margin and all other demand loans.(well, maybe first rule is "don't", but uncallability would be the second rule for the people who refused to follow the first rule).This is of course a wonderful case of "do as I say, not as I do".I have a loan now against real estate with much of the proceeds in stock.But it has a few positive aspects: It's uncallable for 10 years, current interest rate 2.32%, prepayable, and it's denominated in euros.With luck the euro will have another big fall and I can pay it off with itsy bitsy banknotes covered with eensy teensy windows and bridges.Jim
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