There’s a great article in today’s SF Chronicle about how equity lines have gone mainstream over the last several years. Gone are the days when debt was uniformly frowned upon by our conservative grandparents; today it’s all about using equity to make home improvements, pay for school, travel or any of a host of other activities.
The author writes: “Ten years ago I was horrified by my parent’s use of our family home as a source of cash, but now I see things differently. Would it have been better to have paid off the house and lived mortgage free? Maybe. But going that route would surely have meant curtailing their choices earlier — never giving their kids college tuition, or working extremely long hours, or having to get corporate jobs instead of working for themselves.”
To use your equity or to let it build up? That is the question.