The value of your home is not guaranteed to go up, and it could go down. The leverage that is so alluring when real estate values are on the rise can act to magnify losses as well as gains. Real estate is not a liquid asset. You can lose if you have to sell in a hurry, because of a divorce or job loss, for example. You lose, too, if you invest in a home money that could have been invested elsewhere for a better return.
Homes cost money to maintain.
And a hefty mortgage payment may make it hard to maintain savings and investment programs for retirement, vacations and other things. The Kiplinger Washington Editors, Inc.