Tapping in to my parents home equity ???

[Account Closed]

My parents have had their house paid off for over 15+ years already. The house is worth about $250k. Is it a good idea to finance the house to tap into the equity? (using the money to invest in more real estate).

My concern is that it will start a monthly payment to repay back the loan after not have to pay a mortgage for over 15+ years. I’m trying to understand all pros and cons, would love any insight!!

[Andrew S.]

Originally posted by @Account Closed:

@Mark Durham

Thanks for your response, it sounds like the CONS would be no worse than any other form of funding a real estate deal.

Except that your parents are carrying the risk and you don't seem very concerned about that.

Obviously, I have no idea as to your parents financial situation and savviness, but I can assure you that if MY children suggested I mortgage my house to finance their projects, then that conversation would be quite short. 

I'm not at all against helping out your kids to get their feet on the ground financially, AS LONG AS it doesn't potentially threaten my own welfare.  The roof over my head is very much part of that!