2007-03-23 00:15:43 · 4 answers · asked by clare w 1 in Business & Finance ➔ Personal Finance
NO, you would actually be losing money. The interest of the loan would be higher than the interest any savings account would pay.
For emergency funds you could set up a line of credit with your bank using your homes equity as collateral.
2007-03-23 00:26:02 · answer #1 · answered by e.sillery 5 · 3⤊ 0⤋
There is a problem with the terminology here.
Increasing the size of your mortgage is increasing your **debt**, not increasing your savings. You cannot borrow to increase your savings any more than you can lose weight by eating more cookies.
Debt is fundamentally bad in almost every conceivable case. A modest mortgage for a modest house which is paid down as quickly as possible is about the only debt that average people should even consider.
If you have difficulties saving money, borrowing more is not the answer to the problem. Ruthlessly examine your finances to find the root of the problem - which I believe is likely to be a spending issue, not a saving issue. Sorry if I come across as harsh here, but it is a case of "been there, done that, REALLY didn't like it".
2007-03-24 12:30:12 · answer #2 · answered by brunt 4 · 0⤊ 0⤋
No you should never do that. It will cost you more in the long run. You may want to try Prosper.com for a loan instead.
http://everincreasingwealth.blogspot.com
2007-03-23 12:39:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
NO...bad bad idea. Home rates are skyrocketing. Never do that unless its a real emergency.
2007-03-26 10:50:16 · answer #4 · answered by Pepper 6 · 0⤊ 0⤋