Using REI for children's college fund.

[Robert Howard]

I watched an video by @Brandon Turner that talked about a property that he purchase and put a 15 year mortgage, so he would be able to refinance it about the time his daughter is ready for college.  My question is will it still be a good idea if interest rates keep rising because our economy has gotten better.  So that the interest rates 18 years from now is 9-12% from the bank.  I'm curious because I was about to embark on an investment for that reason. I think its a brilliant idea, but that crossed my mind. Any opinions would be greatly appreciate.  Also any ideas if the interest rates are that high, what to do to make it still work out.  

[Jeff B.]

Any plan is better than none, however you need a specific "goal by date" to have any hope of achieving it.

Ignoring other FEES, tuitions can vary and you will need plenty:

• The tuition alone [USC] is $1,978 higher than what current students are charged. It's also significantly more than Stanford's $45,729 tab and the $47,600 students are charged at Yale. Factoring in the cost of books and living expenses, the total cost for one Trojan year will be almost $70,000, USC officials estimate.Mar 4, 2016

Agreed, these are all Ivy League class schools, but 4 years anywhere is not trivial.

• UCLA: Estimate about $54,000 total for non residents and $30,000 for
• ASU: Attendance Costs in 2015 Varied Between $10,587 & $41,004
• Georgia State: $21,414 was the cost of tuition and $2,128 the cost of fees. The cost of tuition and fees is reduced dramatically for residents of Georgia. Tuition for these students is set at $6,846 for the 2015 - 2016 year, a discount of 61.9%.
• Georgia Southern: $14,755 was the cost of tuition and $2,092 the cost of fees. The cost of tuition and fees is reduced dramatically for residents of Georgia. Tuition for these students is set at $4,181 for the 2015 - 2016 year,

SO, That's a ton of equity to REFI at a typical mac LTV at 65%