Hypothetical Scenario Your Opinion Wanted ​

[Andrew Jones]

Hypothetical Scenario

I pay 200,00 for a house

15 years later I have paid off 190,000 of the 200,000

My equity in the house is now 190,000 (not adjusting for appreciation or depreciation)

I pull out 70% of what I own in this home because that is the max the bank lets me take out against the property

A recession hits and every house goes down in value including mine

My 200,000 dollar house is now worth 150,000

I still own the house, my mortgage is on a 200,000 dollar home even if it is only worth 150,000 at the moment

I am in the same situation as everyone else who has a mortgage and a house worth less than the mortgage they are paying

Questions

Taking my money out of the house has no negative impact on the property right? It did not affect the worth of the house?

Am I actually better off because I have the money in my pocket to go invest in these newly discounted houses?