Question : What's a safe way to use my home equity to make money?
I own my home and don't have a mortgage payment. Can I get a home equity loan, and then invest that money into a safe investment (such as a bond mutual fund) and pocket the difference each month, assuming that the fund's monthly distribution is higher than the mortgage payment? Or, is there some other "scheme" I can set up that would be similar? I don't want to use the home equity loan money to start a business or buy real estate or anything like that - too risky. I'd prefer to stick with things like mutual funds. I just got to thinking that my home is just sitting here, not really going up in value (in my area, anyway), and that money isn't doing anything for me. Surely there has to be a safe way to let it make me a little money, right?
- asked by lieinourpig
All Answers:
Answer #1
Sounds like you have your priorities in order.Make sure your cost to refinance don't exceed yourinterest. Using your equity to make money isn't abad idea, but be careful. A possible resale couldbe a good and better move. Especially if you arecapable of building a second home for a profit. Ifyou choose to stick with mutual funds or anyinvestment funds, make sure you stay on top of themarket and keep up with conditions. It is easy toloose your investments very quickly. Considerreselling and rebuilding before the next election.Building materials is down considerately and laboris up but interest is low. After the nextpresidential election, that could changedramatically. Good luck
- answered by sniper
Answer #2
How much interest rate is the mortgage companycharging you (If you take a loan) exactly?
- answered by Frank Castle
Answer #3
If you do that, you are asking for trouble.
- answered by Italian girl
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measure and fulfill your financial needs
