“The cost of borrowing is dirt low,” he says, “and it will rise next year.”  He takes equity lines even if he has no pressing need for the money, so it's there if he wants to travel (he took the family on a Viking River Cruise last summer and is heading out for a trip to Botswana this month) or to buy a small home for a relative. He advises his clients to tap this cheap money, too. A few provisos: Tonkinson scrutinizes offers for hidden fees and pays balances quickly. Also, equity lenders usually don't escrow for taxes and insurance either, so borrowers must do that.

Another plus in short versus long terms, Tonkinson says, is emotional. Don't stretch out your indebtedness, he advises. “There is a psychological benefit when you own your home, a feeling of victory … of freedom from Big Brother,” he says.
 

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