What would you do with $200,000 home equity?

[Oblio13]

Get out of debt and stay out of debt.

 

[cqranch]

I am a realtor and I would have to agree with the others. Either leave the equity alone or sell to hopefully go into a house paying cash. Real estate market and financial markets are way too unstable right now.

 

[ChickenToes]

I agree with everyone else. Don't touch it!

 

[Their Other Mother]

Equity in your home is NOT a savings account. The market fluctuates so the value goes up and down. The only time it becomes real cash is when you sell it. If you downsize then there is the capitol gains issue you have to deal with if you don't reinvest the money into your new home.

 

[Lazy J Farms Feed & Hay]

DO NOT TOUCH YOUR EQUITY!!!!

If you are scraping by now, how will you afford the payment for the Home Equity loan payment?

Jim

 

[AussieSharon]

A home equity loan still comes with interest payments. I have to agree with everyone else, unless you can easily pay the loan back WITH interest every month don't touch it.

If money is already tight and you take a home equity loan that you have trouble paying back the first thing they'll be coming for is your house.

Personally I'd sell the house, take the $ and buy another house with the profit.

 

[Oblio13]

"Home mortgage crisis". Does that ring any bells?

 

[miss_jayne]

no touchy!

 

[Msbear]

You have to think about this...In a year or two or more when the housing crisis is over (it will end just like it has every other time it has happened since the beginning of time) that your equity may be doubled and that would be the time to invest.

Another look...stocks are down, housing prices are down. If you weren't so strapped, I would look for a fixer-upper in a great neighborhood to fix up over the next year or two and, hopefully, when that house is finished you'll have sweat equity as well as rising housing prices to make a sweet buck.

Now, considering the fact that your strapped, to many unpredictable things are going on right now. And it would be a real shame to be all stretched out and have a crisis and have to let go one of the properties.

Im a gambler and we have about 80 in equity and we're stting tight. Im also a real estate agent and I can tell you good deals are plentiful right now but they still happen in a good market. You will need to get serious when the time is right and have a good agent who will do searches for you every other day or so to keep you posted!

Good Luck and feel very fortunate you are sittin so pretty right now. I know it doesn't seem like it (I know because my hubby is an electrician and I ain't sellin poop but all your hard work will prevail.

 

[hoosier]

Add my voice to the choir.