Viewing a single comment thread. View all comments

yes_its_him t1_j6es81o wrote

Reply to comment by ShankThatSnitch in Pay down on house or keep in savings? by jws1300

You have to pay money to access your own equity.

And if you don't have income for whatever reason, you won't even get that HELOC

6

ShankThatSnitch t1_j6exb3p wrote

Yeah, I know you pay interest. I was speaking mainly to the liquidity. Also, why I used the word "somewhat". I'm not sure what you are trying to rebut here.

−2

yes_its_him t1_j6ez09s wrote

Liquidity isn't generally used in that context.

"A liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities."

It's not all that different from saying you can take out a personal loan.

3

ShankThatSnitch t1_j6fayws wrote

I know it is similar to a personal loan. The difference is that you have the home equity as collateral, so the odds of approval are higher, and the rate should be better.

But I agree that a home is not a liquid asset, but the equity can be tapped somewhat easily with a HELOC. That was the only point. And I don't think this is a replacement for an emergency fund.

−3