It is the same as borrowing against any asset:
One holds the asset, maintaining the ability to capture upside moves, while also putting the equity (value) held in that asset to use.
It is no different than refinancing a piece of real estate. One gets the cash but still enjoys any increase in the home value.
This has compounding benefit if the money used from the loan is applied to other assets that provide financial benefit instead of buying a car.
But to each their own.
You also keep yourself exposed to suffering the downside moves. True, downside is limited (you can forfeit). But regular downswing leaves you wishing you just sold instead.
Homes are non-fungible, you do not want to move out.
Thx, !vote
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