Joe Biden and First Lady Jill Biden have made extensive use of their Delaware homes to secure finances, frequently taking out mortgages and refinancing their properties.
The Daily Mail reported that despite their reported net worth of $10 million, records indicate they owe $541,000 on their current Wilmington mansion.
Since 1975, the Bidens have owned homes in Delaware, starting with a property in Wilmington purchased for $185,000. Over a span of 21 years, they negotiated 15 mortgages and lines of credit on this home.
This initial Wilmington property was sold in 1996 for $1.2 million to a former MBNA executive, a deal that drew some controversy. Following this sale, the Bidens purchased their current Wilmington mansion for $350,000 in March 1996.
Between 1996 and 2014, the Bidens engaged in 20 different home credit agreements and mortgages totaling $4.23 million on this mansion. Despite their significant net worth, they still owe $541,000 on this property.
The Bidens have negotiated a new mortgage or credit deal approximately every 17 months on both of their properties. This includes numerous loans from various financial institutions such as Wilmington Savings Fund Society and TD Bank.
A finance expert told DailyMail.com, “It doesn't make a lot of sense unless they were desperate for cash.” This frequent refinancing seems to reflect repeated drawing on the homes' equity.
LA realtor Tony Mariotti noted his perplexity, “I don't understand why anyone would view their home as an ATM. Constantly pulling money out of your home.” Mariotti also expressed concerns about accumulating mortgage fees.
In stark contrast to their history with Wilmington properties, the Bidens' Rehoboth Beach summer home, purchased in June 2017 for $2,744,001, had no mortgages attached and was a cash purchase.
Their decision to pay for the Rehoboth property in cash stands out against their trend of frequent refinancing. This substantial purchase did not involve the same patterns of leveraging home equity as seen with their Wilmington homes.
The Bidens reportedly have a net worth of approximately $10 million. Their income sources include salaries, investment returns, pensions, and book royalties, although Joe Biden reported no royalties for his books this year.
In 2023, the Bidens earned $620,000 and paid $146,629 in federal taxes. Their current liabilities include the mortgage on their Wilmington mansion, a term loan of about $15,000, and a $50,000 loan against a mutual fund.
Their total assets range from $1 million and $2.6 million, with documented liabilities between $350,000 and $850,000. These figures paint a complex financial picture, juxtaposing substantial assets with notable debt.
The practice of leveraging home equity has led to significant mortgages on properties primarily intended as residences. This has sparked discourse about the financial prudence of such choices.
Critics argue that using home equity as a financial resource can accumulate fees over time, detracting from long-term financial health. "I understand to some that equity can feel like dead money that's sitting there doing nothing, but over time, mortgage fees really add up," commented Mariotti.
Views on the Bidens’ approach to managing their property equity reflect broader debates about financial strategy regarding home ownership and debt management.
"I've always preferred the view that paying off a mortgage over time is a forced savings account that bears modest interest," added another finance expert.
Joe and Jill Biden's extensive refinancing history with their Delaware homes has made headlines.
Their strategy of frequently leveraging home equity has led to substantial borrowing totaling $6 million, despite their $10 million net worth.
While they own their Rehoboth Beach property outright, the Biden's Wilmington mansion still carries significant debt. Critics and experts alike have weighed in on the financial wisdom of such practices, highlighting varying perspectives on managing home equity and accrued debt.
