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Is your home equity locked?

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Conventional wisdom, especially here in Wisconsin, would usually suggest that debt is bad. Mortgage debt, especially, can feel like a heavy, long-term burden. That’s why many see owning a home “free and clear” as a worthy objective.

The problem with conventional thinking is that it usually leads to conventional results. Many “conventional” thinkers are far from achieving their most desired financial goals.

Here’s a new way to think about mortgage debt: Having some equity in your home is a good thing, but having a lot of equity may not be.

Why?

Because to access the cash you’ve invested in your home, you have only two options—to sell or borrow.

When you have no choice but to sell, you are at the mercy of the market and can’t look for opportune timing.

Similarly, borrowing at a point of need may be prohibitively expensive or even impossible.

You can avoid a potential lockout, forced sale or expensive loan by putting funds into safe and liquid accounts instead. You also can maintain an equity credit line against your property before it’s needed. Either choice can move you away from conventional thinking and into smart management.

Contact me today if you would like to talk about managing your home’s equity.

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