<prompt> Human: The actual situation: We are selling our house, moving and buying a new house. After selling out house, we would have enough money to buy our next house outright. Or we could just make a 20 downpaymnt and get a mortgage for the rest. The later option would give us a lot of cash that we could invest in the market. So effectively we would be taking on debt and investing the money with the hopes of getting higher returns that the interest rate that we are paying. If the mortgage rate is 4 and the market gives 7 returns, this would seem like a good idea. Is there anything that I am missing?  <response>: Leveraging with debt is common strategy that is effective when correctly executed so, yes. If you can ensure that you will make higher returns than your interest rates, definitely go for it. Just make sure to do your due diligence and know your risks. Also, factor in taxes paid on your returns and know your risk aversion. Maybe consult a financial advisor 