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Originally Posted by A&A
 Why are some people calling the HELOC an emergency fund? It's a LOAN AGAINST YOUR HOUSE. AND HELOCS, in a lot of cases, put you upside-down in your house (where you owe more than it's worth). The sooner you pay it off, the better.
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: The idea of an emergency fund is to prevent you from going into debt. Engineering your finances to take on more debt for an emergency is rather ironic, actually. Borrowing more against your house is not a responsible way to manage emergencies.And I DO think that $40K is a reasonable EF. Our income is not quite as much as the OP's, our house is worth quite a bit less, and dh is a tenured professor (so he has just about as much job security as you can have)... but we have an even larger EF.
I would get that HE loan paid off ASAP and then work toward a good EF.
