[Mannaggia l'America]

For example, you make extra payments and pay off your mortgage, so you own your house free and clear. Now you lose your job--try tapping into your equity to support yourself until you find a new job. You won't be able to. If you'd been investing the money in other, more liquid places rather than in paying off your mortgage early, you'd have a huge fund to live off of.

I'm with you. There's nothing like cash in the bank (or similar).

Let's say I channel extra $ into my house and I get it paid off in 10 or 15 years. Now my oldest kid is ready for college - I have to go ask the bank if I can borrow my own money that is tied up in the house. What if rates are 10% or 15% then? Anyone remember the late 70's and early 80's?

[Texas Eagle]

Now my oldest kid is ready for college - I have to go ask the bank if I can borrow my own money that is tied up in the house.

But you're house is paid off, right?

[Skywalk]

Bingo!

Why pay the bank extra money that you're going to be asking in the form of ANOTHER loan anyway?

Pay them suckers just once! Get the longer-term note unless you're rolling in mega-millions.

[Iwo Jima]

Now my oldest kid is ready for college - I have to go ask the bank if I can borrow my own money that is tied up in the house.

You are not responsible for your kid's college tuition. If you are not totally free of debt -- no mortgage, no car loan, no credit card debt, no debt whatsoever -- and with substantial assets in the bank, you have no business subsidizing your kid's college tuition. And even then, it's another question whether you should do so.

Your duty to yourself and to your kid is to be free of debt and totally self-sufficient so that you will not be a drain on them and society during your old age. This is the way that it was 50, 100, 200 years ago and the way that it should be now.

Get out of debt. Get out of all debt. Especially debt on your home. This was the standard procedure 50 years ago, and it is just as vital today. Anyone who tries to convince you that you are better off being in debt is just a snake-oil salesman trying to get rich quick off of your hard earned dollars.