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Originally Posted by muscles59
so, if you find yourself in a cash crunch, then THAT is the time you want to start making monthly payments?!?!?! That doesn't make sense to me, what am I missing here?!?!?!
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I think what it means is this:
You need $20,000 cash, but don't have it, but have a house with a lot of equity. A 30-yr fixed at around 6% costs around $6 per thousand. So you could have $20,000 in cash and only have to pay around $120 per month. Of course these are rough numbers, but I think that's the point being made.