Quote:
Originally Posted by melpetezrinski
I agree with your 1st paragraph but are you sure about that "zero return" as it relates to your opportunity cost argument? And I'm not talking about capital appreciation.
|
My intention behind that comment was that having your home paid off you're only getting capital appreciation. That money is "dead money" otherwise. In the past 20 years it was easy to pull a modest amount of money out your home in a home equity line of credit (HELOC) for under 5% or much less in most cases and then invest it to generate income if you're willing to take on a small amount of risk for extra income.
Obviously that's not necessarily as viable of a strategy now in the current interest rate environment.