Reply to Taking out a second mortgage to buy stocks

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If you could get a 2.5 interest rate it would make sense. At today’s rates of 8.5 your margins are way too tight for this make financial sense. Any slight negative fluctuation and you lose your equity.

That’s a terrible financial decision.[/quote]

Rates are literally falling as we speak, they will be able to refinance that mortgage to a sub for in a very short time. Meanwhile, their stork stock portfolio will be up 20%.[/quote]

Great point.

If interest rates go up, OP will be happy she has a big chunk of money to invest or to generate interest or dividend income. If interest rates go down, OP can simply refinance and snag the lower rates on the future.

We did this in 2020 and converted a 6.3% mortgage into a 2.3% mortgage. It’s called leverage, folks, and it’s how true riches are made. [/quote]

It’s also how people lose their shirts. 2008 is calling.

Don’t ever gamble on your home. It’s not an investment, it’s your place to live. If rates go down, then you refinance and put the savings into the market. [/quote]

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