Does cashing out home equity make sense?

If you have substantial equity in your home, taking equity out of your home to invest in other assets can make financial sense, as long as you are fully aware of the pros and cons.

Don Taylor from bankrate.com explains what is involved in the decision making of whether to cash out home equity to invest somewhere else.

Major factors to consider include:

• Whether you have high interest rate debt you need to pay off?
• Whether you have sufficient and stable income to afford a higher monthly mortgage payment?
• Whether the expected after-tax investment return is greater than the after-tax rate you are paying on your mortgage?

See full article here cash out home equity to invest somewhere else