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<<<Further, even if the return you would get in the market were equal to the return on the mortgage, the fact remains that YOU CAN'T SPEND YOUR HOUSE.>>>

Not to be a wise-a**, but how about reverse mortgages?

6 in one hand, half dozen in the other. No matter how you slice it, there are only two ways to "spend your house" [use the equity you've built up].

1. Sell it. Problem with that is, you'll either have to live in the street, or buy another house. And greenbacks don't make for very good building materials.


2. Borrow against your equity. Basically, you pay someone else (the bank) to use what is supposed to be your money (your equity). Now how is it that you have to pay someone else to use what's is supposed to be yours? Sounds more like, it (the equity) is THEIRS! And a reverse mortgage is just that - a mortgage. It's debt. It must be paid back. Maybe not by you, but certainly by your heirs. That whole thing about the bank taking possesion of your house and selling it on behalf of your estate to get what you owe, is hogwash. [As Flava Flav of Pubic Enemy fame would say, "Don't, don't...don't, don't .... DON'T believe the hype"!] It's a last resort on the banks part. Do you want to saddle your kids with the burden of repaying a debt you created?


If paying off the mortgage makes such economic sense, why would the wealthy individuals in Stanley and Edelman's books choose to carry a mortgage even when they can easily pay it off?

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