Don’t Bet the House. Especially Your House.

At times like these, when the stock market is low, there are tons of opportunities to buy stocks at a discount. Right?

And when mortgage rates are low, it’s a great time to borrow against your home equity. Right?

Now, what if you borrow against your home equity to buy discount stocks. That would be smart, wouldn’t it?

Well, according to a great article today on TheStreet.com by Peter McDougall, the answer to the last 2 questions is NO. NO. NO. NO. NO.

I’ve never heard of homeowners borrowing against their houses to invest in the stock market. But according to Peter, some do. And the risks are tremendous.

What happens if the return on your investment doesn’t cover your mortgage? What if your investment goes down? Then what? You’ll lose money. And you could lose your house!

It doesn’t make sense to me. But that’s just me.

If you’ve ever thought about doing this, you might want to read Peter’s article first. Then give us your take.