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lorenavedon · 05-15-2014, 07:16 PM

I'm really interested in the %35 down then get a HELOC route. I already PMed WinnipegFan about it and got good info but was wondering if anyone else has done this to purchase a place or if they had any other insights. Seems like an easy way to save in volatile markets. If you feel the stock market is currently too risky and being in cash earns almost nothing, I'd rather put everything I have into a home, even if it's %50 with a HELOC. Zero savings... then if you hit a few months of tough times you can take money out IF needed to survive, but if times are good you can continue to dump in as much as possible and basically earn %2 to %2.5 (which is what you'd be losing holding it in a savings account and keeping a mortgage) (Please no "put your emergency funds into stocks or bonds" advice) Thanks

eg. 200k savings (%1.5)

buy 400k place
260k HELOC. (%3.5)
after purchase balance - 0 savings and 200k on HELOC %3.5

vs (%20 down = 80k) 320k mortgage @ %3
plus 120k savings @ %1.5

05-15-2014, 07:16 PM	#38
lorenavedon Backup Goalie Join Date: Dec 2013 Exp:	I'm really interested in the %35 down then get a HELOC route. I already PMed WinnipegFan about it and got good info but was wondering if anyone else has done this to purchase a place or if they had any other insights. Seems like an easy way to save in volatile markets. If you feel the stock market is currently too risky and being in cash earns almost nothing, I'd rather put everything I have into a home, even if it's %50 with a HELOC. Zero savings... then if you hit a few months of tough times you can take money out IF needed to survive, but if times are good you can continue to dump in as much as possible and basically earn %2 to %2.5 (which is what you'd be losing holding it in a savings account and keeping a mortgage) (Please no "put your emergency funds into stocks or bonds" advice) Thanks eg. 200k savings (%1.5) buy 400k place 260k HELOC. (%3.5) after purchase balance - 0 savings and 200k on HELOC %3.5 vs (%20 down = 80k) 320k mortgage @ %3 plus 120k savings @ %1.5 Last edited by lorenavedon; 05-15-2014 at 07:25 PM.