[quote=all]A friend of mine just bought a house in north county, primary residence, all cash. He plans to refinance with 50-60% LTV loan.[/quote]
I’ve seen this a couple of times as well, craptcha. In these cases, they were native San Diegans (imminent retirees) intending on returning to their “home turf” to “retire.” They used all cash to purchase in order to get their offers accepted and then took out 30-50% mortgages after COE (while still *employed* in another locale and purporting to refi an “investment property” in SD) in order to have a small MID for a few years until SS kicks in. At that time, they intend to retire the mortgage.
Buyers in this category only want as much MID that they can use on their tax returns to shield income and not a penny more. If that number is $4K or $7K per year in interest, so be it.
