Quote:
Originally Posted by pylon
The number one rule in lending, always borrow as much as you can, if you can borrow at less of a rate than you could reasonably expect a return. In the off chance, things go all 1981 again and the bottom completely falls out, you will still have your 50-60k or whatever parked somewhere, or at least a portion there of it left if you really desperately need it.
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I think your strategy is sound so long as people have the discipline to actually save.
What I see on a regular basis is people mortgaging to the maximum, then promptly buying a new Ram, RV and jetskis and renovating their kitchen using their line of credit.