President Joe Biden and first lady Jill Biden have reportedly used their Delaware properties to secure numerous mortgages and refinance them 35 times over the decades, borrowing $6 million. With an estimated net worth of $10 million, this extensive financial leverage raises questions about their strategy.
This refinancing pattern began in the late 1970s, shortly after their marriage. According to a report from the Daily Mail, the couple has adjusted their mortgage or credit terms approximately every seventeen months.
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These financial decisions come under scrutiny during investigations into the financial activities of the president’s family. The Bidens’ current home, purchased in 1996, still has a $541,000 mortgage. Their previous home in Wilmington, purchased for $185,000 in 1975 and sold for $1.2 million in 1996, had 15 mortgages and lines of credit before it was sold to the vice chairman of MBNA, Delaware’s largest employer, who also sold that year Hunter Biden employed.
“Why would anyone treat their home as an ATM?” asked Tony Mariotti, a Los Angeles real estate agent and founder of RubyHomes.com. “Over time, mortgage costs add up,” Mariotti told the Daily Mail.
Mariotti highlights the significant costs associated with mortgages, which can be significant. These costs include application fees, appraisal fees, credit check fees and mortgage insurance. Mortgage origination costs can range from 0.5% to 1% of the total loan amount, which translates to $1,500 to $3,000 for a $300,000 mortgage.
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The Bidens’ financial records show that they purchased their current four-acre estate for $350,000 in 1996 and have since used it for 20 different home loan deals and mortgages totaling $4.23 million. Their summer home in Rehoboth Beach was purchased in 2017 for $2.74 million, but was purchased without a mortgage.
Despite a combined income of $620,000 in 2023, mostly from salaries and investments, the Bidens continue to carry significant debt, mainly from the mortgage on their Wilmington home and an equity loan on the same property.
Their total liabilities range between $350,000 and $850,000, while their assets are estimated between $1 million and $2.6 million. From 1978 to 1994, the Bidens made thirteen home loans and two credit agreements totaling $1.72 million.
“Even as a kid in high school, I was seduced by real estate,” Joe Biden wrote in his 2007 autobiography, “Promises to Keep.” Biden started buying homes — especially those outside his budget — in his 20s, taking out multiple mortgages and receiving loans for life insurance policies, according to a 2021 Town & Country article.
From a personal finance perspective, using home equity as a source of financing can be risky due to the potential for accumulating significant debt and incurring high expenses. Homeowners should carefully weigh the costs and long-term consequences of such financial decisions.
Consulting a financial advisor could provide better alternatives, such as personal loans, retirement savings or investment income, which can offer more favorable terms and reduce financial pressure.
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This article Joe Biden Reportedly Refinanced His Delaware Homes 35 Times by Borrowing $6 Million – Expert Asks: ‘Why Would Anyone Think of Their Home as an ATM?’ originally appeared on Benzinga.com
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