Here are the details, you take out a low interest mortgage on your home, you then you invest the proceeds in investments that are protected from creditors. This achieves a few things, first, this keeps creditors from viewing the house as an easy target for legal judgments personally as the home has very little equity due to the mortgage.

And secondly, let’s assume you were able to acquire a mortgage at 3% interest. If your investments return 9%, you are ahead 6%. But don’t make the mistake of taking out an adjustable rate mortgage because you may find yourself losing equity and investment dollars at the same time.

The largest risk you face cashing out all of the equity in your home is what happens if you lose money in all or most of your investments? What if your investment return doesn’t cover the payment on the mortgage and with your creditors decide to take your investments rather than your house?

While the cash out mortgage programs are a good deal, you should consider talking to an attorney about the state laws protecting your home and a certified financial planner about ways to boost investments to cover the mortgage payments.