Wednesday, April 17, 2013

Is a mortgage a smart way to pay for college?

http://www.usatoday.com/story/money/personalfinance/2013/04/13/paying-for-college-mortgage/2071033/

Tis article is about a couple asking this blogger if it would be a good idea to take out a mortgage for their child's college tution, instead of taking out of the retirement money. The couple is debt free at the moment and they feel that taking out a mortgage is a better idea. The blogger tells them that things can go bad for whichever route they take. If they take the money from retirement then if they get laid off, then they have to pay off that loan imeditley or they will face a lot of taxes and penelties. If they take out a mortgage, then they would be putting their home at risk. The blogger said the best way to get the moeny would be to do a home equity loan.

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