Bitcoin And Your Mortgage
Posted by Eric Skates on
In recent months, homeowners across the country have taken out second mortgages on their homes, to buy into the feeding frenzy that is Bitcoin. Industry experts are against this. Investors say, it’s no different than using the equity in your home to pay off college tuition, but what is right for you?
The truth is that no one knows what Bitcoin is going to do, at present, the cryptocurrency sits at $18,900, which is up from the $1000 start it had at the beginning of 2017. However, this new form of money is foreign to many homeowners, who have spent years building the equity on their homes for the future. Financial experts have covered this issue, however as a homeowner it is up to you to investigate both the benefits and downfalls of such an investment. You should first familiarize yourself with the foundation of the currency, block chain, and according to a recent article in Slate, you should never invest more than you can afford to lose.
There will always be investment fads and the allure of “getting rich quick”. Your home and the equity in it may not be the place to start when it comes to dipping your toe into the stock market.
Rule one of any investment is to educate yourself and make sure that the investment you make is worth the risk, more importantly is it worth risking your home?
Do your homework. You should always consult a mortgage industry professional before moving the equity in your home. Your loan officer and realtor can be great resources. You should also make sure that you consult a financial planner, who can look at your current standing and help you decide how much, if any, you have to invest without disrupting your family’s lifestyle.
Crypto currencies are here to stay, your home should be too.