In 2002 I refinanced my house to lower the interest rate but kept the payment the same.  This allowed me to get a larger mortgage and walk away with cash.

On 11/20/2002, I deposited $10,000 of the refinancing proceeds to a College 529 Plan for my then 1-year old son.  By 1/1/2003, the value of the account had declined to $9,797.07.  As of June 30, 2014, the account was worth $30,365.04.  There have been no other additions to the account.   Using 1/1/2003 as the start date, the annualized return has been 10.4%, despite the worst financial crisis of my lifetime.

The best part is, it didn’t cost me a penny out-of-pocket.*

* Net cash flow impact of both transactions.  Investing involves risk of loss.  Past performance is not a guarantee of future performance.  This example is intended to illustrate a creative solution to long-term investment goals.  This strategy might not be available currently for numerous reasons, including changes in mortgage underwriting standards.