Had another caller today who was in a rush to pay off their house, saddled with a 15 YR mortgage and a bunch of equity that they cannot get to.
They are in financial trouble, but don’t qualify for a loan today. Lost their job. About 6 years into a 15 YR mortgage.
Their January payments will be at least 30 days late, mortgage and credit cards. Their credit score will drop 50 to 100 points once the lates hit, and then they will have no chance of refinancing for a long time.
They never thought they would be in this situation… selling the home may be their only way out, for whatever they can get.
The way I see it, a 30 YR mortgage and the difference in the bank would have spared them from this situation…. The difference in payments would mean over $150,000 in the bank after the last 5 years.
