[Mannaggia l'America]

But if you're house is paid off, why can't you just borrow against it?

That's my point. What if interest rates are 10% or 15% when I need the money in 10 or 15 years? What if I have no job or lower income at that time and a bank won't lend me the money because I can't pay it back?

Let's say you have a house worth $250,000 and it is totally paid off. You lose your job. You now need $50K or $100K of that money. You can't get it - you won't qualify for the loan. But you say "it's my money"! No, it's not. It's your non-liquid asset.

If I would have been stashing some of that money away as cash instead of putting it all the house, I'd have some of that money to live on.

[Texas Eagle]

That's my point. What if interest rates are 10% or 15% when I need the money in 10 or 15 years? What if I have no job or lower income at that time and a bank won't lend me the money because I can't pay it back? Let's say you have a house worth $250,000 and it is totally paid off. You lose your job. You now need $50K or $100K of that money. You can't get it - you won't qualify for the loan.

But you can sell the house couldn't you? And if the house is totally paid off, whatever you sell the house for, all the money goes into your bank account. Whereas if you owe money on the house, you will only get what's left. Am I right?