Thursday, September 6, 2012

Bernanke Refinances His Mortgage at Current Low Rates

Should you do as the Fed chairman has done and refinance your mortgage at current low rates and lock in a long-term fixed rate? I think so.

Fed chairman Ben Bernanke’s latest financial disclosure form, released today, shows he refinanced his Washington home in 2011. He took out a 30-year mortgage with a fixed 4.25 percent rate, replacing one taken out in 2009 that carried a 5.375 percent rate.

His mortgage is valued at between $500,000 and $1 million.

Current rates will not less forever. The debt explosion will eventually result in much higher rates, even Bill Clinton knows this. It's time to lock in long-term debt, including mortgages at long-term fixed rates.


  1. What a sucker I just got 3.5%.

  2. ..... or just save the money and live affordably and cut the banks out of your life for good.

    Starve the beast.

  3. Re-fi and DON'T TAKE CASH OUT! Get a lower note and pay it off aggressively.

  4. "pay it off aggressively."

    And, given the inevitable inflation, which is poised to become rather rapid when the excess reserves spill out and the foreign dollar holdings come back in, how is that smart? Pay minimum, and spend extra money on gold. Mortgage interest is tax deductible, which makes the effective rate in post-tax money very very safely below average GLD/USD appreciation.