Stay away from 30 year mortgages and repeated refinancing your house
what happens if you refinance your mortgage every 5 years? You will never pay it off. You will end up financing vacations, cars and even dinners (via credit cards) over 30 years. I suspect that your vacation, car or dinner wasn't quite THAT good.
Answer to running up debt - don't. Learn to live within your means. your house value is a great savings account which will serve you well in the future - if you don't keep withdrawing the savings.
So, why do mortgage companies keep telling you to 'use that built up equity'? Because, like any savings account, it is money that they want to move from your account - to theirs. They sell. If you buy. Then they make more money. No - they are not your best friends. They are their own best friends. YOU are just a customer.
Further, what are the most expensive points of home ownership? Buying and selling - because that's when the commissions are paid to realtors, mortgage people, home inspectors, termite inspectors, escrow companies and more. So, while everyone would love to live in their dream house, tone down that dream.
So, save up for the vacation - and spend your OWN money (not borrowed money) on it.
Save up for a modest car - and buy based on price, not monthly payment. Buy the car for the long haul - maintain it and make it work for you. The most expensive dates are when you buy or sell a car.
Use credit cards modestly and pay off the balance each month.
And, even when a financial advisor says - take the equity out of your house and put it into the stock market - Just Say NO. Because it is your home, your roof, your shelter, your family place - not to be risked in the stock market (so the advisor can make more commissions).
A famous money advisor said:
1 - Spend less than you make.
2 - Do it over a long term.
And, you will be fine.
