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Why Do You Think Your Wealth Is In Your Home?



“Kenny's family is so poor that yesterday, they had to put their cardboard box up for a second mortgage.”

            --Eric Cartman

Google the term “unlock the equity in your home” and every result on the front page – both paid search results and organic search results – has to do with a mortgage. In other words, to “unlock the equity,” you almost always have to borrow, which is, at its face, a losing proposition. Borrow the money and get cash while adding a new liability. Zero sum, except that you now have interest payments to make.

Why, then, do people count their home equity in their net worth? Unless you plan on downsizing your house to less expensive housing, I argue that you cannot count the equity in your house in your net worth. Why? Because, like death and taxes, the need for shelter is certain. That shelter may change its form from a house to a RV to a nursing home, but it is always there.

Let’s imagine that you own a house and have no mortgage on it. Can you “unlock the equity in your home” to put that value to another use?

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Jason Hull is a Fort Worth fee only, hourly financial planner who serves clients in Fort Worth, TX and Dallas, TX as well as serving clients nationwide.

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Hull Financial Planning is a Fort Worth, fee-only hourly financial advisor. The cities we serve in the Dallas-Fort Worth area include: 

Tarrant County: 
Arlington, Azle, Bedford, Benbrook, Blue Mound, Burleson, Colleyville, Crowley, Dalworthington Gardens, Edgecliff Village, Euless, Everman, Flower Mound, Forest Hill, Fort Worth, Grapevine, Grand Prairie, Haltom City, Haslet, Hurst, Keller, Kennedale, Lake Worth, Lakeside, Mansfield, Newark, North Richland Hills, Pantego, Pelican Bay, Rendon, Richland Hills, River Oaks, Saginaw, Sansom Park, Southlake, Trophy Club, Watauga, Westlake, Westover Hills, Westworth Village, and, White Settlement 

Dallas County: 
Addison, Balch Springs, Cedar Hill, Carrollton, Cockrell Hill, Combine, Coppell, Dallas, DeSoto, Duncanville, Farmers Branch, Ferris, Garland, Glenn Heights, Grand Prairie, Grapevine, Highland Park, Hutchins, Irving, Lancaster, Lewisville, Mesquite, Ovilla, Richardson, Rowlett, Sachse, Sand Branch, Seagoville, Sunnyvale, University Park, Wilmer, and, Wylie 

We also serve clients nationwide and can leverage technology to maintain our client contact and communication.


Hull Financial Planning, 2939 Crockett St. #315, Fort Worth TX 76107, (817)476-0584

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