BiggerPockets Money Podcast · Friday, July 31, 2026
Scott Trench discusses the strategic consideration of using home equity for liquidity, noting that for individuals who take the standard deduction, the interest on a HELOC is effectively a post-tax expense. He mentions obtaining a quote for a HELOC to maintain the option, even with a paid-off home, highlighting the trade-offs of tapping into home equity versus other assets like rental properties.
“You said something interesting. You know, turning your home into a source of liquidity. I have a paid-off home and realizing any any liquidity from that is very unattractive to me from what I can see right now. I have, literally the other day, got a quote for a HELOC because I want that option to exist.”
“And when one thing that bugs me about tapping into the home instead of a rental property in my particular situation is that I will almost certainly claim the standard deduction unless I go pretty big on one of these. And so my interest on my home, for example, is effectively like a post-tax rate, right? Like, like I'd have to deduct that interest on my home, not my interest on my home, but my interest on my borrowing against my home for example, is effectively like a post-tax rate, right?”