I think some here forget the usefulness of HELOCs. If you pay all cash for your house, but are worred about the lack of liquidity (need my cash, NOW!) then just get a HUGE line of credit on your house. This is your emergency fund. You won’t pay interest because you WILL NOT put a balance on it.
Then, if you ever need the cash or lose a job, then the house equity is there to save you, in cash, today.
Don’t wait until you lose your job before you go for the HELOC – you might not qualify. Oh, and don’t get the HELOC if you’re not certain you’ll leave it alone.
