Quote Originally Posted by South_Texas_Sun
If you have your house paid for, financing might not be that bad, but if you are basing the loan amount for a second (or third) mortgage on the current price of housing, you might just consider what happens if real estate prices drop (or heaven forbid....plummet)
I guess I still don't see what the houseing price and market value of my house has to do with the fact that I'd rather finance a pool for 15 years as a 3rd mortgage instead of saving up for 9 years before I could get one paid for with cash.

A Pool is NOT and investment! A house is NOT an investment! The best thing that could happen for me right now is a big ass inflation with my wage following it. A Pool does not add any value to the house (some parts of the country it's even a huge detriment) so you might as well write it all off. I figred if I pay $40k for something I might as well enjoy it as long as I can. As for a house not being an investment: if you live in a nice house now and it appreciates greatly in the next 10 years, guess what the rest of the houses will be doing, including your next dream house? They'll go up in price just as well. So if you sell yours then you'll have to shell out a lot more for your next one. Unless you're planning to downsize after the big price hike then upsize again after a downturn and love to move with all its associated fun and expense, I would not consider buying a house an investment. Anyone telling you that a house (primary residence) is an investment is lying!

I just bought a house that I plan to send my kids to college from (right now I only have one, he's 18 motnhs old) so I don't care about the market value of my house or where it's headed. I don't plan to borrow against its value any time soon (3 mortgages are enough) so who cares what the value is or if I'm upside down right now?

Both me and my wife are professionals so I really don't think we'll have to find a new job any time soon or if we do it'd be all that hard.......

I guess we got pretty off topic here, but as long as the price of borrowing money is as low as it is right now, I don't see any reason not to do it.