What should I do with my equity?

Question

My condo was valued a couple months ago at 180k and I only owe about 60k on the mortgage. So i've got some equity just sitting doing nothing, but i'm not sure what's the best thing to do with it. Any advice?

Answer 1

In order for you to get that equity you have to refinance or take out a line of credit.  Either way you are paying interest to get that money.  Your new investment has to return at least the cost of borrowing to break even.  What if your new investment loses money?

Answer 2

Well you can keep it in there for one. It doesn't hurt to just leave it alone. If you want you can take some of it out. Not all of it and invest it in maybe some rental properties. You can also use it for other investments. Just whatever you do, DON'T take it all out!

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Answer 3

Taking this so-called equity out of ones home is one of the main reasons for this sub-prime mess we are in. This burning need to take equity out of ones home to spend on something that's not generally needed is the irrational want that has helped get this country in the mess we're in. Keep the equity where it belongs. In your home. Keep your payments low and invest whatever you planned on paying for an additional home equity loan in some worthy investment. When you decide you want something bigger or nicer, you'll have a larger down payment and lower monthly mortgage payments. Or if you plan on retiring in that condo, then you can do so without monthly payments down the road. Don't fall into that trap. Get out of debt. See www.daveramsey.com