Low mortgage rates and low returns on other investments are prompting people to invest more in their homes.
In the past, financial advisers recommended that people devote less cash to homes and more to other investments. With iffy returns from the stock market, they now say investing in their homes could be a better move. 
Some homes in the United States are worth less than the owners paid for them. If they want to trade up to a better home, they feel trapped where they are. But some are not as trapped as they think.
Low mortgage interest rates and low home prices are presenting unusual opportunities in the housing market.
According to The Wall Street Journal, some underwater homeowners are selling their homes for less than they owe on them. They write a check for the difference. Doesn't sound smart?
Economists say it can be. They can now buy a bigger, better home for not much more money. The home they want is also bought for less than its actual value.
They are essentially trading up, but monthly payments are less because their new interest rate is lower. And they may have reduced the term to 15 years. Right now, the average 15-year rate is 4.17 percent, but some lenders are charging much less.
At the Mortgage Bankers Association, they say if people don't have anything else that is bringing a tremendous return, paying their houses off sooner than they need to is like buying themselves an annuity.
One real estate broker in Denver says about half of home sellers are paying $5,000 to $45,000 in cash to sell their homes. Some people are doing the same thing just to refinance.
Economists are saying trading up can be smart even if it means plunking down some cash. In cases where people live in less-desirable neighborhoods, they can find better homes in tonier areas that offer better appreciation potential for the future.
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