[knodi123]

> This is essentially borrowing money to invest

Yeah, I don't know why more people don't see it this way.

Everyone seems to agree that you shouldn't eagerly make extra mortgage payments to pay off your home loan ASAP. Because you can pay it off over 30 years and presumably make more $$ investing than whatever paltry interest rate you had on your home loan.

But the same people can't explain why it's a bad idea to take out a 2nd mortgage to invest in the market, or even secure a low-interest loan with your home as collateral. But isn't it exactly the same thing?

[hiq]

> But the same people can't explain why it's a bad idea to take out a 2nd mortgage to invest in the market, or even secure a low-interest loan with your home as collateral. But isn't it exactly the same thing?

So what was their reasoning?

In the end it's all math, where some numbers are random variables with the corresponding variance. So this all depends on what rate you get, what returns you expect from the market, what's your risk tolerance, etc.

[antifa]

A second mortgage is extra risk to a person's most important asset which is typically reserved for funding a major home improvement project or for emergencies.

The "$2000 0% APR mattress loan" is useful because $167/ month is much easier to budget for and doesn't require a huge hit to savings.

One of these is just sane budging, the other is minmax gambling.

[knodi123]

> A second mortgage is extra risk to a person's most important asset

Okay, fine, so that's the reason we don't like borrowing money to invest.

Now explain why it's good to have a mortgage at all? Don't just say "because a couple hundred a month is a small number". That's not a reason, it's just a single, incredibly subjective and situational factoid. Is there a logical or mathematical reason not to increase the amount of my mortgage as long as I can easily afford the monthly payment?