Cash out refi to invest in stock market?

[Anonymous]

Is this a terrible idea? Would it make sense to say do a cash out refi on our home for $100k, invest it all in something non-crazy like VTI and use the gains on the market to eventually pay off the mortgage faster than 30 years? Crunching the numbers, you'd probably still come out ahead even after fees even with some very conservative numbers for returns on the market. What am I missing here?

[Anonymous]

taxes

[Anonymous]

Leverage means risk. How would you have done with this strategy in 2008?

[Anonymous]

What interest rate would you get, what would your percentage of equity be, monthly payment, term, years to retirement?

I recently bought a house and took out $822,000 mortgage. I then sold my old house and could pay off the mortgage in full but invested in the index fund instead. So it’s similar to a cash out refinance. I have a 15-year term, 25% equity, 1.75% rate, and monthly payment is manageable.

[Anonymous]

I sold a house, pocketed 150K and passed on the plan of putting that $ into a new house. I bought GameStop with the money, 4M later I think it was a sound decision

[Anonymous]

Anonymous wrote:Is this a terrible idea? Would it make sense to say do a cash out refi on our home for $100k, invest it all in something non-crazy like VTI and use the gains on the market to eventually pay off the mortgage faster than 30 years? Crunching the numbers, you'd probably still come out ahead even after fees even with some very conservative numbers for returns on the market. What am I missing here?

It's all about risk tolerance but generally speaking, yes, it is a terrible idea

[Anonymous]

yes. It's a terrible idea. You tell me where the market is going to be 6 months, a year from now.

[Anonymous]

Anonymous wrote:I sold a house, pocketed 150K and passed on the plan of putting that $ into a new house. I bought GameStop with the money, 4M later I think it was a sound decision

Hope you sold it

[Anonymous]

What a dummy. Market at all time highs but let’s borrow against our home and put it into a market that will be flat or down this year

[Anonymous]

Good idea, but careful what you invest in. I would not do etf, too slow for me and not worth the trouble.

[Anonymous]

Anonymous wrote:I sold a house, pocketed 150K and passed on the plan of putting that $ into a new house. I bought GameStop with the money, 4M later I think it was a sound decision

I want to be you! That’s amazing!

[Anonymous]

Anonymous wrote:

Anonymous wrote:I sold a house, pocketed 150K and passed on the plan of putting that $ into a new house. I bought GameStop with the money, 4M later I think it was a sound decision

I want to be you! That’s amazing!

amonymous internet poster? don't believe everything you read.

[Anonymous]

Anonymous wrote:I sold a house, pocketed 150K and passed on the plan of putting that $ into a new house. I bought GameStop with the money, 4M later I think it was a sound decision

[Anonymous]

Anonymous wrote:I sold a house, pocketed 150K and passed on the plan of putting that $ into a new house. I bought GameStop with the money, 4M later I think it was a sound decision

How was that a sound decision? You were gambling and got lucky.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I sold a house, pocketed 150K and passed on the plan of putting that $ into a new house. I bought GameStop with the money, 4M later I think it was a sound decision

How was that a sound decision? You were gambling and got lucky.

Wasn’t luck. There was and still is a massive short position that will gun the stock. Go on their website and look at the job postings they are a tech company with 1.4 billion in the bank. Main stream media paid fear campaigns are out of control on GameStop. Why ? Because the funds that pay that stand to lose the most on a squeeze. I sold some but have bought over half of my shares back. I should’ve never sold it’s not over the price is wrong