Assuming you have a mortgage, haven't refi-ed beyond the $100K limit for tax deductibility, and are an experienced investor (fee/tax minimized, diversified), do you have a well thought out amount of home equity vs financial investments?I mean, is there a reason you have a $300K mortgage and $100K in a taxable account vs the other way around? Increasing home equity is equal to investing at your mortgage rate, after all tax effects. After tax, your mortgage is probably only worth 3-4%, versus long term stock returns of twice that. But the mortgage prepay "return" is risk free. So I guess if you have a long time horizon, you should have a bias toward less home equity and more in stocks. Does anyone have a rule or guideline for home equity % vs age? There are other considerations as well- I have friends whose "earthquake insurance" is having only 10% equity in their properties.I've refied to the 100K limit, so would have to buy a new place to reset the mortgage basis. Nick
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra