Continue using the money you are accustomed to spending on your mortgage for anything you want! A possible use is to pay for your children's college education. The monthly payments should be able to pay for most or all of the educational expenses. An additional choice is to use the equity in your home to purchase a condo or townhouse for your child to live in while attending college. The housing cost will be less than paying for a dormitory, not to mention reaping the tax benefits. Ensure your child finds a roommate to contribute to the cost of the mortgage. Hire your child as a property manager, paying him/her a salary. The tax benefits are tremendous!

     Consider purchasing another property to be rented, reaping the tax benefits along with an added income. Use the money to put away for your retirement adding to any other investments you may currently have in your portfolio. You will be able to achieve your goal of financial independence to do as you want, whenever you want.

     Use your home equity for a personal use loan, such as the purchase of a car. The second mortgage will then result in your car loan becoming a tax deduction. Keep in mind the interest rate for a second mortgage may be higher than the car loan interest, but the tax benefits may become the determining factor. Weigh the benefits before deciding! Also, don't get a second mortgage for a car with a 15-year duration; instead get the normal maximum duration for a car loan which is 5 years. Be sure to keep in mind that failure to pay or defaulting on an equity loan can result in loosing your home since the loan is tied to the value of the home.


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