I personally took a very large mortgage when I moved here even though I had the moany to pay for this home. I did it for two reasons:1. as we get older, many find it is necessary to do a reverse mortgage because they are running out of cash (this is very costly) 2. It allowed me to have a substantial amount of cash if I wanted to travel, buy a new car or whatever. So using these excuses above, it allowed me to invest the money which allowed me to make between 10 & 25% in the market while my interest rate on the mortgage was only 3.25%. Also as one person said, why do I want to leave the value of this home to someone else when I can be enjoying the money while I am still alive?
So if you can refinance at a very low rate and avoid the big costs by shopping on line, I would do it!
Quote:
Originally Posted by tvbound
Recognizing that a larger than normal percentage of TV homes are purchased entirely with cash, I'm sure there are still plenty that although they didn't really need to, financed at least a portion (which we've been contemplating) of their purchase. While the thought of not having a monthly mortgage is very enticing, so is the idea of having a small and easily managed mortgage, while also having a healthy extra 6 figures in the bank.
I'm just curious, given the current low mortgage interest rates, if there are any people who have been thinking of refinancing and maybe taking out some equity built up since purchasing. The idea of even giving a 70 year old a 30 year mortgage is a thread in itself.LOL I can't help but think if there are some who have found their calculations of savings & investments in retirement aren't working out to what they thought they would be (due to higher costs, extended longevity or both), are looking to refinance to make up for it.
I believe I read that most banks aren't doing HELOC's right now, so I'm thinking that refinancing (even with closing and other costs) would be the only way to access cash in the equity built up in the last number of years.
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