Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
Interest rates are getting very low again. All that equity in a paid-for home just earns whatever the appreciation in value that is occurring for where the house is located. A more aggressive approach would be to refinance the house at low rates and invest the proceeds into something that will earn you a higher rate of return.

An even more aggressive approach would be betting the farm on a sure thing in the sixth race at Aqueduct. Sorry, but no matter how much makeup you put on that pig, I still see it as gambling on borrowed money.

Note that I'm putting great emphasis on your use of the verb "will." If there's a guaranteed after-tax greater buck in the bank by borrowing here to invest there, sure, it's a great idea. I just don't see those opportunities.

Phil
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.