Risks of using a home mortgage for stock market investing
Borrowing heavily against home equity to invest in the stock market creates constant anxiety and sleeplessness over potential market crashes. If the portfolio takes a major hit while being heavily leveraged, investors risk losing their home equity and facing difficulties keeping up with loan payments.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
Found another way around this?
Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.
- 1Maintaining plenty of free cash to cover payment risksDid this help you?
- 2Borrowing against stock for expenses rather than full property leverageDid this help you?
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“What happens if your principal takes a hit and can’t meet the payments?”source ↗
“Uh, you are 85% levered against your house with equity market risk?”source ↗
“I wouldn’t be able to sleep.”source ↗
Where this came up
People with this problem also raised
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- 2Why does the safe withdrawal rate drop with bonds?
- 2How to get a reality check on my investments
- 10How to handle a house and mortgage before getting married
- 2How to afford a mortgage payment that more than doubles?