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With mortgage rates as low as they are, my husband and I are considering refinancing and pulling out some cash to take care of some much needed home improvements.

My husband has proposed that we take out more than is necessary for the home improvements and invest this cash for our retirement and future well-being. It seems to make sense. We can deduct the interest, this equity we're pulling out can be growing at a rate probably not possible by leaving it in the house.

The obvious down side is that we're increasing our overall debt. We do plan to stay in our house for many years and our equity is close to 50% of the value of the property.

Does this plan make any sense or are we being incredibly short-sighted?

Thanks for the help, Janet
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