[USER]

House and cars paid off.

No debt.

My job is stable and would consider myself a high earner. I would consider this long term investment. My thoughts would to get the money in the market sooner and slowly pay off the loan. What is the saying “time in the market and not timing the market.” If that is true then wouldnt this make sense to invest the enire amount now than to invest $900 a month for the next 20 years?

[Richard]

Home equity is dead money and houses suck anyway. If that offer is real and the rate is fixed I’d take every penny of it and repay as slowly as possible. The poverty mentality is preventing most of the people in this thread from understanding negative real interest rates mean getting paid to borrow.

[Mark]

One of those things that sounds like a good idea but isn’t

[Mark]

HELOCs are variable rate instruments. Sometimes introductory offers are made, but those typically expire in a short period of time. Rates are not going to be less than the banks can borrow from eachother or the Fed bank. Make sure you review the contract thoroughly.

[Ryan]

I just caution against using secured debt to finance/ buy something that would normally be unsecured.

[Alexa]

Take it out and open a HYSA that makes 4%… put it in savings so ypu always have access to it and have the payments go direct, boom you make 1.65% doing nothing. Plus your credit has a good account!

[Jason]

I think you have some Dave Ramsey all debt is bad folks in here.

You could get a multi year cd at 4+ with 0 risk. Shorter term could be even higher. It’s literally free money. Not earth shattering, but free with 0 risk again. That’s a no brainer. Index funds and property all have a bit of risk which id prob take on since I have a long time horizon, but these never use a heloc people, are being far too conservative.

[Alexa]

I would not take any debt for almost any reason unless you are starting a business personally. Even then I would be super careful. You are debt free. Enjoy it and focus on earning money to invest now or at least that is my personal take. I appreciate others will disagree and I respect that too.

[Ken]

Ive never seen a heloc with a fixed rate. mine was 2.75% beginning of last year before the fed raised rates, now its over 8%. I would be careful and double check, as soon as you withdraw money the rate may jump when you get your statement.

[Don]

What does “put it to use” mean? If that means investing it I wouldn’t risk my PAID for house to invest.

[Author]

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