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> I can't claim that value without rendering myself homeless. HELOCs ( https://en.wikipedia.org/wiki/Home_equity_line_of_credit https://en.wikipedia.org/wiki/H
by Infinitesimus 3mo ago
> I can't claim that value without rendering myself homeless.
HELOCs ( https://en.wikipedia.org/wiki/Home_equity_line_of_credit https://en.wikipedia.org/wiki/Home_equity_line_of_credit ) exist to solve the problem of cash being locked up in your house. You can take a line of credit using the property as collateral or other purchases.
- beAbU 3mo agoAssuming the mortgage is paid off!
- Eddy_Viscosity2 3mo agoHow does that help? If don't have enough cash now, then how will getting a loan that needs to be paid back with interest help with that. I will have cash for a little while, then I will have way way less as I have to make payments. Then I miss a few and they take my house and I'm homeless.
- Volundr 3mo agoSure, it increases one's borrowing power and that can be useful. But "I can use it to go deeper into debt" is pretty limited utility compared to other kinds of wealth.