<<So here's my question. Right now I have about $50k in efund money, just sitting there in cash earning a piddly 1%. I could use that cash to pay down my mortgage and get a HELOC in case of emergencies. >> $50K is a lot of cash sitting around waiting for a need to arise.I would carefully examine how much cash you really need to have on hand to protect yourself from unexpected problems. If you have more than you reasonably need, I think there's a good argument for using some of it to pay down the mortgage. That would include considering what other assets you have that could be liquidated should a need arise. Perhaps you have stocks or life insurance that could be sold or borrowed against.I consider ALL my assets as part of an "emergency fund." Some are highly liquid such as checking or savings accounts. Other are illiquid such as real estate that would take time and cost money to convert into cash, but could be done if a need was really there.So look at your asset and income as a total scheme that can be manipulated in various ways to meet your varying needs.Seattle Pioneer
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