I have a friend who is “upside down” on his mortgage by about $150K, and still paying 6.5% rate on 10-year interest-only loan! He would like to be able to refinance to the lower rate…it would help with payments, that’s for sure.
However, and I think most people who bought when prices were high would agree, a reduction in principal would help them more.
But how far do we carry this idea? Should someone who bought stocks at a high price on the market be reimbursed when the stock market crashes?
