No. of Recommendations: 0
Wether to pull money out of the mortgage or not depends on your risk adjusted returns from the various scenario's under consideration. There is no correct answer anyone here can give you.

For example, if you can get a mortgage at 7% up to 80% LTV with 0 cost (increased interest rate causes a rebate which covers any closing costs) then that is a risk free return of 7%. What happens to the price of the house is immaterial as wether you have 20% or 40% down it is the same.

Put that money in the market and maybe you will make 8-10% but that is with additional risk. You may have other investment options open to you which are better than the above.

Another factor is if you take it out it is available to help with any cash flow difficulties you may face, a significant risk reducing aspect. Conversely it is available so you might be pretty tempted to spend it to pay off the credit cards (e.g. on depreciating & consumable items). You've got to answer these risk related questions for you and your personal situation.


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