Another reason why having too much equity in your house is not a good idea is the situation, I believe,we're in right now. The real estate market is near a top, if real estate prices come down as most people seem to think homeowners will be left holding the bag.

Anyone who has lost a job and has tried to refinance and take some cash out of THEIR house knows what I'm talking about. There isn't a bank that will let you take out all the equity out of your their home without showing what's called in mortgage business as the three C's.

Credit, Collateral and what we're discussing here Capacity, as in the capacity to repay the loan. Real tough to do when you're out of a job.

I help people implement strategies foung in Doug Andrew's book Missed Fortune.
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