I just read an article on money. I don't even begin to think that I am an expert, but I was reading the post when I came across the words: Lazy Assets. I may not have a degree in business, but my home equity is not a lazy asset. Beware of using your home equity folks, In my humble opinion it is the last step before going under. I did it once, and I almost lost my house. I came out of it, but the money and nervous nights is not a good idea. My daughter did lose her house. It's not a way out of debt. It's a trap, and everytime I see the commercial telling you what a good deal they have for you if you get a second mortgage. The government should put an end to these folks. The government tells you "Don't take drugs, drink and drive, cheat on your taxes. How about they say, "Don't use your home equity. I'm done.
By the way, assets are never lazy. Maybe a little slow, but never lazy. Asset sitting around saved my house, and my life when my husband was laid off due to a RIFF. The world is a dangerous place. Ask the WWII generation. They have money because they saved it. Okay, now I'm done.
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Comments: 15
Hit it hard. I'm not critcizing; I'm trying to warn people. I did it and boy did live to regret it. But I did not lose my home: i did lose a lot of money.
Seriously, if I ever get out of debt, I never intend to finance another thing! In the future I will save and pay cash or I will never own it.
There are some people, say those who KNOW they're going to be moving in ten years, and for whom an interest-only mortgage for ten years is a great idea. They WILL sell the house at the end of the ten years and will build up equity during that period and invest it in a better, bigger house in a better location.
With money and financing generally, one size does NOT fit all.