- Home
- The...
The Bidens have refinanced their properties an 'astonishing' 35 times, the Daily Mail reports — is there anything wrong with that?
President Joe Biden and his wife, Dr. Jill Biden, have long owned some sweet high-end homes in Joe's hometown of Wilmington, Delaware.
Now the Daily Mail claims it has obtained records indicating the Bidens have refinanced their Delaware properties an “astonishing” 35 times, yielding about $6 million in cash over that period.
Don't miss
- Beating the market is no myth: These expert stock-pickers' recent success could help you build generational wealth
- 'It's not taxed at all': Warren Buffett shares the 'best investment' you can make when battling rising costs — take advantage today
- These 5 magic money moves will boost you up America's net worth ladder in 2024 — and you can complete each step within minutes. Here's how
“I don't understand why anyone would view their home as an ATM. Constantly pulling money out of your home,” Los Angeles realtor Tony Mariotti told the publication.
However, other experts argue there’s a time and place for tapping into your home equity.
The Biden real estate portfolio
In 1975, before his marriage to Jill, Joe paid $185,000 for a 10,000-square-foot mansion, which once belonged to the DuPonts. He nicknamed it “The Station.”
According to Forbes, the Bidens stayed in the luxury home for 20 years, “using it as something of a savings account,” which is to say, repeatedly refinancing it. He reportedly did so multiple times over the years whenever he needed liquidity (read: cash), before selling it for $1.2 million in 1996 and putting down $350,000 for four acres of lakefront land.
When they’re not residing in the White House, the presidential couple now spend their time at the Wilmington family home — which Joe built on the lakefront land and is now worth between $1 to $2 million.
And in 2017, he splurged on a $2.7-million summer home in Rehoboth Beach, which he’s reportedly borrowed against as well. Forbes points to financial statements that indicate Joe took out $15,000 to $50,000 against a line of credit in 2022, then another $50,000 last year.
Read more: ‘You didn’t want to risk it’: 80-year-old woman from South Carolina is looking for the safest place for her family’s $250,000 savings. Dave Ramsey responds
Is refinancing your home a bad thing?
Neither the Daily Mail nor Forbes has reported why exactly the Bidens might have extracted so much equity from their real estate holdings, but there are a few reasons why experts do recommend such tactics for homeowners.
For one, refinancing your property can be a smart move if mortgage rates move down and you’re able to secure a significantly lower rate with smaller monthly payments or shorten the length of your mortgage term.
Since you’ll have to pay 2-5% of the loan amount in closing costs when you refinance your mortgage, you’ll need to calculate whether switching to a new loan will actually save you money. The rule of thumb has generally been to refinance if you can slash your interest rate by at least 2%.
On the other hand, taking out a reverse mortgage or a home equity loan or tapping into your equity though cash-out refinancing can help homeowners gain access to cash when they really need it.
This money can then be used as you see fit, whether that’s to pay off higher-interest debts or fund major home renovation projects to increase the overall value of your home.
That said, there are, of course, situations where it might not make financial sense to tap into our home equity as well.
"It's not a good idea to be tempted to use your home equity for frivolous purchases," Ian Wright, director at Business Financing, told CBS News last year. "Risking your home for the sake of borrowing money for a fancy holiday or upgrading your car is definitely a foolish move."
What to read next
- Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here's how you can save yourself as much as $820 annually in minutes (it's 100% free)
- Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here's how
- Cost-of-living in America is still out of control — use these 3 'real assets' to protect your wealth today, no matter what the US Fed does or says
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
- https://www.msn.com/en-us/money/realestate/the-bidens-have-refinanced-their-properties-an-astonishing-35-times-the-daily-mail-reports-is-there-anything-wrong-with-that/ar-BB1poRNS?ocid=00000000
Related
CEO: Here's the No. 1 most common type of good boss people actually like—and how to become it
The best bosses that people actually like often share a key trait, workplace culture experts say: Each one's a "people person." Here's how to build the skill.
MoneyBill Gates: 7 Expenses He Spends the Most Money On
According to Forbes' World's Billionaire List, Bill Gates is the seventh wealthiest person on the planet. He made his money in technology and became the world's youngest self-made billionaire (at the...
MoneyA retired baby boomer who still needs to work to get by thinks Social Security should be seen as a right in the US
Linda, 64, is retired. But that doesn't mean she's done working.
MoneyCostco rival changes key perk policy, but it could backfire
Sam's Club Plus members are taking to social media to let the wholesale giant know they are not happy about new changes, and may jump ship to its rival.
MoneyHere's the Average Social Security Benefit for Retirees at Ages 62, 66, and 70
The average Social Security benefit for retired workers at age 70 is much higher than the average benefit at age 62.
Money12 Sneaky Real Estate Agent Tricks That Could Cost You
Navigating the real estate market can be tricky, especially when dealing with agents who might not always have your best interests at heart. While many real estate agents are honest professionals,...
MoneyTest yourself: See if you’re one of the few who can answer these 2 basic retirement questions
Financial literacy can make a big difference in how well prepared we are for retirement.
Money