Reply to I need about $20k to get us through a layoff-home equity loan?

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Reply to "I need about $20k to get us through a layoff-home equity loan?"

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[quote=Anonymous][quote=Anonymous]Why has this thread already gone on four pages?  OP is basically asking the following: “Is it OK to dip in to my $700K pile of cash to cover a $20K emergency?”  The correct answer is, “No shit, Sherlock.”[/quote]

OP may not qualify based on debt to income ratio, since only one of them is working. OP had mentioned she can’t pay childcare with a credit card, but I don’t think that’s actually true. While not preferred by schools etc, paying by credit card is usually an option if OP pays the transaction fees. Especially if OP thinks this will be a short layoff, I’d use credit cards over heloc. In a few years when interest rates improve, I’d consider a cash out refi as well, and use that money for more liquid non-retirement investments. A lot of people make the mistake, in my opinion, of overindexing on age-restricted retirement investments and primary home real estate “investments”, neither of which are liquid. It’s really a shame that it’s so hard to get access to your own money, but that’s why it’s important to invest outside of these two vehicles. It’s a common middle class trap.[/quote]

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