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yes_its_him t1_j6dgacd wrote

I wouldn't.

Equity isn't liquid.

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ShankThatSnitch t1_j6epgzu wrote

It is somewhat. Getting a HELOC isn't very hard.

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yes_its_him t1_j6es81o wrote

You have to pay money to access your own equity.

And if you don't have income for whatever reason, you won't even get that HELOC

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ShankThatSnitch t1_j6exb3p wrote

Yeah, I know you pay interest. I was speaking mainly to the liquidity. Also, why I used the word "somewhat". I'm not sure what you are trying to rebut here.

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yes_its_him t1_j6ez09s wrote

Liquidity isn't generally used in that context.

"A liquid asset is an asset that can easily be converted into cash in a short amount of time. Liquid assets include things like cash, money market instruments, and marketable securities."

It's not all that different from saying you can take out a personal loan.

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ShankThatSnitch t1_j6fayws wrote

I know it is similar to a personal loan. The difference is that you have the home equity as collateral, so the odds of approval are higher, and the rate should be better.

But I agree that a home is not a liquid asset, but the equity can be tapped somewhat easily with a HELOC. That was the only point. And I don't think this is a replacement for an emergency fund.

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