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Reply to "Taking out a second mortgage to buy stocks "
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[quote=Anonymous]Not sure why everyone is saying this is crazy, but at the same time, the consensus on here seems to be that paying off one's mortgage is a very dumb thing to do. Taking out a mortgage to buy stocks is exactly the same thing as not paying off a mortgage so you can free up money to invest in stocks. Obviously, the terms of the loans differ, and that is an important distinction. But people are still stuck on this "borrow at 3% to invest at 10%" mindset and seem to ignore the fact that stocks have never been more expensive (or *almost* never been more expensive, depending on whom you ask). While you might get 10% in the market over the next decade, you could very realistically get 2% per year (or even -2%). Even if you get 4%, taxes bring that down to the same 3% you get by paying off your precious mortgage. I guess I'm an outlier, but paying off one's mortgage actually seems like a no-brainer to me right now.[/quote]
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