The average mortgage holder has a record $185,000 in equity. What to know if you’re tempted to borrow from that
Charles Sachs, chief investment officer of Kaufman Rossin Wealth, was interviewed by CNBC to comment on how rising home prices have prompted some mortgage holders to borrow from their equity and why some experts advise against that.
Article excerpt: “If I add another bedroom and a bathroom and a pool, the value of that is instantly higher than what you can buy for, not to mention the enjoyment that you’ll get along the way,” said Charles Sachs, a certified financial planner, and chief investment officer at Kaufman Rossin Wealth in Miami.
While some of Sachs’ high-net-worth clients have pursued these transactions for home improvements or even invest in higher yielding investments, these strategies are not for everyone, he warns.
You should be financially savvy and have the ability to take on risk, he said.
Moreover, it is impossible to know when the absolute bottom to borrow will be. Still, we may look back in five years and be envious of current interest rates, he said.”
Read the full article available on cnbc.com