Jonathan Clements' Getting Going Column
Now, what are the risks with such a strategy?
1. Property values have been surging as of late. If you take out the biggest loan possible and the property value decreases, you will lose money if you have to sell the property.
2. Although the S&P 500 has returned 10% on average over the last 30 years, there's no guarantee that those kinds of returns will continue. Therefore, it is important to diversify.
For those who are interested, here's a post I wrote last October with some analysis of 30-year and 15-year mortgages.
Anyway, I think Clements might be onto something here. But, it isn't a strategy without risks. Invest at your own risk!
Tags: Mortgages, Investing, Jonathan Clements, Getting Going