| As to paying off the house mortgage with the money...
For those of us who don't itemize (low property tax and mortgage interest), that 5.5 - 6% tax free return on that money doesn't look too bad these days. Especially income that doesn't affect FAFSA.
And whether you are paying off a mortgage on a house that has appreciated or depreciated, you still owe the same amount of money unless you are one of those who intends upon walking away from your subprime loan on the house you are upside down in. |