Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
September 22, 2014

Biden Refinances Mortgage, Saves a Bundle

SOTU 115 012814 445x296 Biden Refinances Mortgage, Saves a Bundle

Biden is saving thousands after refinancing his mortgage. (Bill Clark/CQ Roll Call)

Vice President Joseph R. Biden Jr. refinanced his home and two home equity lines of credit in 2013, securing super-low mortgage rates that will save him thousands of dollars a year.

Biden was generally been among the poorer senators, but his family finances appear to have improved of late, judging by a review of his financial disclosure forms.

In 2013, he paid off a mortgage on his Delaware home with a 4.625 percent interest rate with a new, 30-year mortgage with a super-low 3.375 percent rate from TD Bank, which has a Canadian parent company.

The mortgage is somewhere between $500,000 and $1 million, and includes a rental property. Saving 1.25 percent on $500,000 would amount to more than $6,000 in savings a year, although after-tax savings would be less because of the mortgage interest deduction.

He also paid off two home equity lines of credit each worth more than $100,000 and took out a new home equity line of credit worth more than $250,000.

The old home equity lines featured interest rates of 4.49 percent and a prime interest rate, respectively.

The new home equity line features a super-low 2.75 percent interest rate and a 20-year term, also from TD Bank. That should save Biden thousands more each year.

Biden, 71, would be more than 100 years old when the 30-year mortgage is paid off, if it isn’t paid off early.

Obama, meanwhile, continues to pay above-market interest rates on his mortgage on his Chicago home — 5.625 percent. We noted a few years back that while Obama had urged a massive refinancing program to bolster the economy, he hadn’t yet taken advantage of low interest rates to refinance himself.

 

Related:

Roll Call’s List of the 50 Richest Members of Congress

10 ‘Poorest’ Members of Congress Owe Big

 50 Richest Members of Congress: The Wealth Keeps Growing

 

 

  • http://www.truefi.com/ TrueFi

    This is cool to know that even the VP is sensible enough to refinance a mortgage . I mean, he’s worth so much $$ yet knows a good mortgage rate when he sees it.

  • Ambas Ador

    Those of us who recognize that civilization’s natural order is the result of forces beyond our control also tend to understand Socrates’ observation that the recognition of ignorance is the beginning of wisdom.

  • Allen Harper

    I am not good enough to recognize a good mortgage rate. In fact I am searching for more details on mortgage. Hope it would be helpful while buying my new home.
    Most mortgage services provided by companies are good and very helpful.

Sign In

Forgot password?

Or

Subscribe

Receive daily coverage of the people, politics and personality of Capitol Hill.

Subscription | Free Trial

Logging you in. One moment, please...