lalenin
September 8, 2008, 6:52pm
61
Tom_Tildrum:
According to a Delaware newspaper article , the net worth figures cited above do exclude real estate holdings. The article reports that Biden owns a $2.5 million house, with a $700K mortgage.
The article suggests that both the sale of his previous home (to an executive of MBNA, a credit-card company) and the purchase of his current home (from a real-estate developer) were on unusually favorable financial terms. These charges, which are just circumstantial, have surfaced in past senatorial elections and apparently haven’t gotten any traction.
It seems that a mortgage that high would take a huge chunk out of his salary, unless he gets an excellent deal in mortgage rates, insurance, and property taxes.
Why yes, I have been looking into buying a house.
lalenin:
It seems that a mortgage that high would take a huge chunk out of his salary, unless he gets an excellent deal in mortgage rates, insurance, and property taxes.
Why yes, I have been looking into buying a house.
As a benchmark, let’s say a 30 year at 6.25%
700,000 would have a $4,312 per month mortgage or 51,744 per year + taxes. Let’s guess 10K per year for Virginia. So it is a big part of his take home pay but still leave a good chunk left over plus his wife’s salary.
BTW: If his rate is only 5.25 than the payments are only $3,871 per month or $46,452 per year
Oy
September 8, 2008, 7:11pm
63
What_Exit:
That’s fine, Real Estate and Stock appreciating in value is the typical way for a senior of retirement age to have accumulated some value or wealth. I know it is my plan. It is not the money I put into my 401k that will make my retirement easy, but the appreciation of that money that will.
This is no knock on him. I feel better that he does have a house with some real value above its mortgage.
Jim
Let’s hope for his sake the market holds up for that type of house. I wonder how much value it has lost thus far, if any.