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Reply to "Paying for home projects - cash or HELOC?"

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[quote=Anonymous][quote=Anonymous]

Sigh.  OP here again.  Having a conversation here sometimes is like banging my head against a brick wall.  If you saved for years how on earth can you not think it's a lot of money?  I wasn't asking if we can afford it, and we certainly can.  Here, lets see what you think:  We have a net worth of over $1million.  Our home is currently worth about $600k but we owe less than [b]$400k[/b].  We have 15 years left on the mortgage but could pay off the entire amount tomorrow, cash.  Apart from our (small by DC standards) mortgage we have NO other debt.  Still, $100k IS A LOT OF MONEY!

I think my question seems to have been lost here.  Among the drivel and people who think that $100k is pocket change, there is sometimes some pretty good advice here that can raise issues that might other wise have been overlooked.  What I'm asking isn't whether we can afford it, but whether we are better off investing the cash and getting X rate of return (where X may be negative depending on how it is invested but may well beat out the cost of interest on the HELOC plus advantage of being tax deductible.)  Does anyone have any thoughts on that matter?  If not, I shall consult google and see if I can find a calculator or spreadsheet program that will help me work out what rate of return I'd need to get for it to make sense to borrow rather than spend. 
[/quote]

Correction: that was meant to read "we owe less than [b]200k[/b]"[/quote]

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