Quote:
Originally Posted by Porsche-O-Phile
Dump the HELOC and get a fixed.
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I'd say dump the loans and be mortgage free.
If 2008 didn't show but one thing, it is that debt can bury you. I much prefer to loan money to other people than to be the guy paying interest. A guy with no debt can take more risk in the financial markets than a guy that owes money on a jumbo loan.
I paid cash for my house 22 years ago. I loan 40% of my money to American taxpayers (short term U.S. Treasuries and U.S. TIP bonds) and have the remaining 60% of the portfolio in blue chip (i.g., good balance sheet) dividend paying stocks.
There will be a day soon when I'll take more risk. In the meantime, I refuse to try to catch a falling knife, and I do not plan to be the pig that gets slaughtered.